"Advice has a vital role to play in helping consumers explore their options and keeping the door open for future conversations."
- Stephanie Charman - AMI
The Association of Mortgage Intermediaries (AMI) has released its Protection Viewpoint 2026 report, 'Protection Reimagined', revealing that 6 in 10 consumers have never received a protection quote, rising to 8 in 10, or 82%, among those who said they can’t afford protection.
The study, developed with L&G, The Exeter and Vitality, surveyed 3,000 consumers and almost 300 advisers, and aims to examine how the industry can effectively address the protection gap.
Just 1 in 10 consumers make it from the start of the protection journey to buying. 72% have never started, rising from 65% in 2025, while 16% started but didn’t buy, down one percentage point from last year.
For those who dropped out of the protection journey, cost or affordability concerns was the main reason, cited by 24% of respondents. This was followed by uncertainty about the need or value of cover at 18%, while 14% said the cover available did not meet their needs.
However, for every reason consumers gave for dropping out of the protection journey, 79% to 95% said something could have changed their mind.
Over a third of those who dropped out due to changed circumstances said that they may have changed their mind had they been contacted later on, and 28% of those who dropped out due to uncertainty of value said that examples of how cover helps people in similar circumstances could have changed their decision.
In addition, a third of those who dropped out due to affordability concerns cited more suitable cover options as something that could have changed their mind, while 28% wanted clearer explanations of alternatives.
A 'no' or a 'not today'?
Among the advisers surveyed, the consumer response that was listed as the most difficult to overcome was 'I’ll look into it later,' named by 49% of advisers.
45% of advisers also listed 'I don’t think I need it' as a challenging response, followed by 38% who named 'I already have cover through work.'
Meanwhile, 40% of advisers said that they generally try to schedule a protection review for the customer’s remortgage. However, just one quarter of consumers said they expect to return to the same adviser for their next mortgage review.
As a result, AMI says that advice must keep pace with changing circumstances instead of relying on one-off moments, and protection should be seen as an anchor point for ongoing engagement.
AMI to lead FCA-backed initiative
In the FCA’s final report on its Pure Protection Market Study, it found that of the 58% of people without protection products, 59% of them have never considered their protection needs.
The FCA named AMI as the trade body to lead an initiative that helps advisers improve how they discuss protection with their customers, aiming to close the protection gap.
AMI says that the 2026 Viewpoint report will shape its work under the FCA’s initiative, and that over the next 12 to 18 months, it will use the findings from 'Protection Reimagined' to bring together stakeholders from across the protection market and identify practical ways to support advisers.
"The protection gap is not new. The sector has made progress through better tools, underwriting, adviser conversations and initiatives such as Consumer Duty, but the gap remains," Stephanie Charman, chief executive of AMI, said.
"Protection Viewpoint lays the foundations to change the trajectory of protection and make it a more natural part of consumers’ wider financial planning. A key part of this is recognising we may be asking consumers to consider protection before we’ve helped them understand its relevance to their lives.
"Advice has a vital role to play in helping consumers explore their options and keeping the door open for future conversations. A 'no' today doesn’t rule out a 'yes' tomorrow."
Vikki Jefferies, market development director at L&G’s Retail business, said that the report’s findings "challenge the idea that consumers are rejecting protection," adding that "the real challenge is making its value clear and relevant to their lives.
"We've spent a lot of time describing the protection gap, but we need to get better at learning from what's already working."
Jamie Page, head of distribution at The Exeter, added: "With only 11% of consumers completing the protection journey, there is a clear need to keep the conversation going.
"The fact that 38% of those who dropped out could have changed their minds on protection if contacted later by an adviser shows just how important re-engagement can be in closing the protection gap."
Andy Philo, director of strategic partnerships at Vitality, commented: "We should not confuse a lack of protection with a rejection of protection. This research highlights an engagement gap as much as a protection gap, and the opportunity to make protection more relevant, accessible and connected to people’s everyday lives."
