There has been a major rise in the number of advisors who referred their clients to specialists in protection products during the past 12 months, suggesting efforts by the industry are paying off.
Many within the mortgage sector have been actively urging advisors to highlight protection services – meaning insurance protection to cover mortgage payments should anything happen to the borrower. Now, the Association of Mortgage Intermediaries is stating that the number of advisors doing so went up by 25% during 2021 – that represents a rise of 11 percentage points.
Among those that have been calling on advisors to do everything they can to narrow what they are calling ‘the protection gap’ are the Income Protection Task Force and the Protection Distribution Group.
Speaking to FT Adviser, Alan Knowles from the Protection Distribution Group said that everyone involved in the campaign knew that it would not bring about immediate results and that much work would be needed. He then went on to add that:
“Seeing the increase in the number of advisors engaging in signposting is brilliant and is a testament to those who have worked so hard to embed it as a core part of financial advice.”
This is the second year in a row when the number has risen – in 2020, it was by 14% –providing a clear indication that the campaign targeted at advisors is having a real effect.
Following the completion of a CeMAP mortgage advisor course, continuous professional development training in subjects like this remains necessary for advisors.