The FCA is working with industry, government and consumer groups to expand protection coverage after finding that around 58% of adults have no life, critical-illness or income-protection cover. The regulator says the initiative will focus particularly on groups more likely to be unprotected, including renters, self-employed and gig-economy workers, lower-income consumers and people with pre-existing conditions.
This reinforces the case for embedding protection conversations in mortgage advice rather than treating them as an add-on. Reports of rising redundancy concerns and the launch of income-protection products including job-loss cover make the discussion especially timely. AI may help advisers identify appropriate conversation triggers, record declined-cover reasons and monitor review opportunities, but it should not replace informed needs analysis, suitability assessment or clear disclosure of exclusions and limitations.