The Exeter encourages action from the industry, as findings from the Association of Mortgage Intermediaries (AMI) and The Exeter reveal that the ‘perception gap’ is widening, driven by low consumer understanding of protection products and fragile consumer savings.
The Exeter’s recent consumer research shows one in four (24%) consumers have less than £500 available to cover essential expenses and nearly one in seven (14%) have no savings at all. This leaves many households dangerously exposed if their income suddenly stops and they do not hold any form of protection.
However, according to the sixth AMI Viewpoint, sponsored in 2025 by The Exeter, Legal & General and Royal London, only 39% of mortgage holders recall having a protection conversation with their adviser. This is despite 82% of advisers reporting they give protection advice directly. This points to a challenge around consumer recall and understanding, rather than adviser intent or effort.
This disconnect is further reflected in only 35% of consumers being able to correctly identify income protection products when provided with a description by AMI, signalling a lack of understanding of one of the industry’s most important products. Simultaneously, nearly one in five consumers (18%) drop out of the protection buying journey, rising to one in four (25%) among under-35s.
It’s positive that 82% of advisers discuss protection directly with clients and the industry is making real progress in normalising these conversations. However, there remains an opportunity to improve on the lack of consumer understanding and ensure that these conversations are clearer and easier to act on.
As a result, The Exeter is encouraging the industry to continue the momentum built in 2025 by exploring ways to:
Make protection conversations simpler, more consistent and easier to rememberCommunicate how income protection supports everyday financial stability, not just worst-case scenariosAddress misconceptions as early as possible in the advice conversationsStrengthen ongoing customer touchpoints to reinforce the value of existing cover
Steve Bryan, Director of Distribution and Marketing, The Exeter, comments: “Advisers are clearly committed to protecting their clients, and the latest AMI Viewpoint shows just how much good work is already happening. What the findings highlight is an opportunity for all of us to continue improving how we support consumers in understanding their options. Our aim is to make the protection journey as seamless as possible. We’re encouraging advisers to make full use of the expertise, tools and resources available across the industry, all of which are designed to help simplify conversations, strengthen client understanding and make their day-to-day work easier.”
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