The Intermediary – September 2025 - Flipbook - Page 78
P RO T E C T I O N
Opinion
Let’s close the
protection gap
I
always find it intriguing how
long-winded the mortgage
process can oen be, and then
the arguably significantly
more vital conversation
of protection is finalised
much more swily. If there was a
tachometer that demonstrated the
time and focus spent during a typical
purchase or remortgage transaction,
the needle would be well within the
redline, and the protection part is
oen the low-fuel warning light.
It’s interesting, as protection is so
extremely vital and complex – yet
providers seem to be able to manage
applications through underwriting
swily. Granted, the o-dreaded
GP reports can slow things down
substantially, but on the whole the
process is smooth.
Protection providers are clearly
working on increasing efficiency
where they can, too. With oen
automated underwriting taking place,
and even online trusts which can be
finalised with a number of clicks,
this offers a seamless process for the
adviser, and ultimately a much beer
outcome for the client.
With this in mind, I always
wonder how the industry mentality
can change in order to ensure that
protection is at the forefront of
advisers’ minds. Some opt to carry out
the protection discussion at the initial
meeting, yet some clients are wary
to apply at such a stage before they
know that the mortgage application is
approved. In my opinion, that’s very
understandable.
Research undertaken by LifeSearch
and the HomeOwners Alliance has
pinpointed that 36% of UK mortgage
holders do not hold any protection
whatsoever. No life cover, no critical
illness cover, no income protection.
This percentage is representative of
more than 2.3 million people.
It’s also reported that in the age
range of 18 to 34, 30% of mortgage
holders have no protection. Still
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The Intermediary | September 2025
within that age range, only 15%
know a lot about income protection,
whereas 57% of mortgage holders
say that they would be in financial
difficulty within six months of losing
an income.
As advisers in this industry, it’s
our duty to educate. Not only those
new to taking out a mortgage, but
those with an existing one, too. If we
all didn’t think we were somewhat
superhuman, we wouldn’t function,
but protection providers give
enough statistics that can back up
our advice surrounding the need for
such policies.
JONATHAN FOWLER
is founder and managing
director at Fowler Smith
36% of UK mortgage
holders do not hold any
protection whatsoever.
No life cover, no critical
illness cover, no [IP]”
Moving the needle
If we can adjust the needle on that
tachometer, that’s where we make a
start. We all know about having the
discussion, providing valuable and
useful insight, and having regular
catch-ups with business development
managers (BDMs) to ensure we know
not only about the policy but also
the value-added services. That then
begins to formulate the ability for
advisers to be confident in having
those hard-hiing conversations about
worst case scenarios. It’s clear that
more needs to be done to highlight the
need, however. Exactly what, I don’t
know. There are plenty of webinars,
summits and networking events that
focus on providers and advisers, but
what about the client?
Could it be that there’s some form
of initiative put forwards, somehow,
much like the Government supporting
high loan-to-value (LTV) mortgages
to get people on the ladder. Well, what
are they doing to keep them there?
Could Starmer’s Government strike
up conversations with protection
providers, not just lenders? I wonder
how that will help fill some of the
‘black-holes’ that Reeves keeps
spoing, and how certain services
might be less leant on.
We as advisers do our duty, and I
don’t doubt that all of us do. But what
can be done to get it in the public eye
even more? Maybe we all need to think
about it together. Perhaps more of us
should connect and collaborate. ●
Government and the industry must work together to fill in the coverage chasm
