The FCA says around 58% of adults have no life, critical-illness or income-protection cover, and is working with industry, government and consumer groups to improve coverage. The Association of Mortgage Intermediaries is expected to lead work helping advisers improve protection conversations, while the FCA has signalled interest in innovation and a protection-focused TechSprint.
This creates an opportunity for advisers to use data and AI responsibly at meaningful life events—such as buying, renting, becoming a parent or changing employment—to prompt a protection review. Segmentation and workflow tools may help identify clients who have not considered cover, including renters, the self-employed and lower-income households.
Consumer Duty remains central. Prompts should support informed choices rather than create pressure, and automated recommendations must not replace a needs-based conversation. Firms should evidence fair value, clear communications and good outcomes, especially where health information or other sensitive personal data is used.