Younger generations see protection as being more important than older groups
Almost half, or 47%, of adviser firms do not have a protection section on their website while a third, or 34%, do not have an online presence at all when it comes to protection, a report from The Association of Mortgage Intermediaries (AMI) has revealed.
While a firm’s website is considered its online shop window, AMI’s report showed that just over half of adviser firms have dedicated a page for protection and that an even smaller proportion – only 18% - have online guides or articles on protection related topics.
Social media is also not being fully utilised to promote protection, with only 24% of adviser firms posting about protection on social media and just 5% having an online quote form. In addition, just over one in 10, or 13%, of advisers personally create protection related content on social media.
According to The Perception Gap – AMI’s fourth annual Viewpoint Report on protection within the mortgage industry, even the advisers’ choice of social media platforms could mean they are failing to reach the protection customers of the future.
New research on the usage of social media found that younger generations, Gen Z in particular, who are heavy users of digital and social channels, primarily use TikTok and YouTube compared to other platforms. However, the AMI report revealed that just 11% use TikTok or YouTube and only 18% post on X – formerly known as Twitter. Facebook (88%), LinkedIn (59%) and Instagram (59%) are the most popular platforms used by advisers active on social media.
AMI believes that there is a potential missed opportunity for advisers there as the younger generations see protection as being more important than older groups, with 78% of Gen Zs and 76% of millennials saying it’s important to have protection compared to 66% of Gen Xs and 58% of boomers.
Surprisingly, however, younger generations – 22% of Gen Zs and 26% of millennials – are less likely to prefer buying protection via a price comparison website compared to older generations – 33% of Gen Xs and 35% of boomers. Nearly one in four, or 24%, of Gen Z consumers said they would prefer face to face, compared to 21% of all adults.
AMI said this only highlights the importance of advice firms blending tech with the human touch.
The AMI Viewpoint report, produced in partnership with Legal & General and Royal London, was conducted by Opinium, asking 3,000 UK adults and over 400 advisers for their views on issues relating to the protection market, alongside qualitative research involving a bespoke community of consumers.
“In this year’s Viewpoint, we particularly wanted to understand the behaviours and opinions of younger consumers – our industry’s future customers – and how they potentially differ from older generations,” Robert Sinclair (pictured), chief executive at the Association of Mortgage Intermediaries.
“We’ve seen some positive indicators that present a reason for the industry to feel optimistic, including a higher proportion of Gen Z respondents viewing protection insurance as important compared to older consumers. However, there is work to be done to fully realise this potential.
“As part of this year’s Five Point Action Plan, we call on advice firms to assess whether it’s clear to consumers the role they play in the protection advice process and the value of good advice. Our recommendations also include actions for advisers, providers, and AMI itself, as we all need to commit to making a difference if we are to fill the perception gap.”
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