The FCA is working with industry, government and consumer groups to expand protection coverage, noting that around 58% of adults have no life, critical illness or income protection. The regulator has also said it will work with the Association of Mortgage Intermediaries to help advisers improve protection conversations, while mortgage-sector commentary highlights unemployment and income protection as potential gaps in advice files.
AI could help advisers structure compliant protection discussions by generating meeting checklists, identifying missing fact-find information and creating clear file notes for human review. It should not make product recommendations without appropriate controls. Firms should ensure that automated prompts do not become a box-ticking exercise and that the client’s needs, budget, exclusions and decision to proceed or decline are properly explored and recorded.