The FCA is working with industry and consumer bodies to close the protection gap, noting that around 58% of adults have no life, critical-illness or income-protection cover. The regulator has asked the Association of Mortgage Intermediaries to support better protection conversations at the mortgage advice stage, while its wider findings reinforce Consumer Duty expectations around fair value, product governance and evidencing good customer outcomes.
For mortgage advisers, the practical priority is a consistent, recorded discussion of life events, illness and loss of income—not simply an optional product add-on. AI tools may help prepare needs-analysis prompts, summarise client disclosures and identify review triggers, but firms must guard against inaccurate summaries, biased targeting and unsuitable automated nudges. Human oversight, client confirmation and robust record-keeping remain essential, particularly where clients decline cover or have complex medical, employment or debt circumstances.