The FCA is working with industry, government and consumer bodies to improve protection insurance coverage. It says around 58% of adults have no life insurance, critical illness cover or income protection, while the Association of Mortgage Intermediaries will lead work to help advisers strengthen protection conversations with customers.
Mortgage advisers have a clear opportunity to make protection a consistent part of key life-event conversations, including home purchase, remortgage, renting and becoming a parent. AI can help create prompts, summarise fact-find information and prepare plain-English explanations, but it must not steer clients through undisclosed assumptions or turn a needs-based discussion into a generic sales process. Consumer Duty, fair-value and product-governance expectations remain central.
- Action: build documented protection prompts into purchase and remortgage workflows.
- Evidence: record the client need, options considered, outcome and any decision not to proceed.
- AI guardrail: ensure all generated client communications are reviewed for accuracy, clarity and suitability.