There is “no clear consensus” on whether service levels in the protection industry have improved over the past two years, research from the Association of Mortgage Intermediaries has revealed.
AMI’s Protection Viewpoint Report looked at advisers’ perspectives on insurer service levels, discovering a wide range of variance.
The most diverse experiences were around underwriting as, while 28 per cent of advisers reported a decline in service, 20 per cent saw improvements.
Similarly, for claims handling, 16 per cent observed worsening service levels, while 12 per cent noted better performance.
Additionally, the report also found that 28 per cent of consumers believe it should take no more than 48 hours from applying for protection to having it in place for someone with no complex health conditions.
However, younger consumers tend to have more realistic expectations, with 21 per cent of Gen Z anticipating a 48-hour turnaround compared to 31 per cent of Gen X.
Legal & General market development director, Vikki Jefferies, said: “The findings from this year’s report clearly show that, while we have made significant strides in engaging with clients and addressing their needs, there is still room for improvement.
“By focusing on transparency, ease of access, and personalised advice, we can better serve our customers and ensure they feel confident and secure in their protection choices.
“Importantly, there’s room for us, as providers, to support advisers when it comes to managing client expectations.
“It’s a challenging but exciting time for the industry and I believe that by continuing to listen to our clients and adapting to their evolving needs, we can make significant progress.”
The report also examined trends in customer retention, discovering that a growing number of advisers are actively working to keep protection policies in force.
Currently 65 per cent of advisers are proactively taking some form of action, up from 60 per cent in 2023.
This includes 56 per cent conducting regular policy reviews and 16 per cent reminding clients of product flexibility and payment deferral options.
Among those taking these steps, 44 per cent have seen improvements in customer retention.
AMI chief executive, Robert Sinclair, said: “This year’s report underscores the growing role advisers play in keeping protection policies active, with more clients benefitting from regular reviews and tailored advice.
“However, the data also highlights areas where the industry can improve, particularly in meeting consumer expectations around policy issuance and claims processing.”
Sinclair argued that, by addressing these gaps and enhancing communication, the industry can ensure more consumers are protected when they need it most.
tom.dunstan@ft.com
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