"A policy once fitted a few years ago may no longer be enough, and people need to understand its exclusions and limitations."
- Jacqueline Durbin - Iress
Recent research suggests we aren’t getting to the heart of the protection gap: most people don’t recognise they need protection in the first place.
The FCA's Pure Protection Market Study found that 58% of adults don’t have life insurance, critical illness cover or income protection. Of those without cover, 59% have never considered their protection needs.
AMI’s 2026 Protection Viewpoint report suggests the challenge is growing: 72% of consumers have never started a protection journey, up from 65% in 2025. Just 11% of those who started went on to buy a policy, down from 18%.
There isn’t just one gap to close. Some people haven’t recognised a need; others struggle to find or afford suitable cover. AMI found cost was the most common reason for dropping out (24%), followed by uncertainty about the need or value of cover (18%).
The FCA also identifies people with pre-existing or complex medical conditions, renters, lower-income households and those who are self-employed as more likely to face barriers.
Even having cover doesn't necessarily mean being adequately protected. Iress's Financial Readiness Index found that 41% feel protected against unexpected health or life events, but only 19% meet its measure of sufficient protection.
Better products and simpler applications help, but they won’t solve gaps in awareness, access and ongoing suitability. We need to make protection relevant at every stage, from recognising a need to understanding how it might change over time.
Making the risk real
Protection rarely comes to mind until something changes: buying a home, having a child, changing jobs or becoming self-employed. These moments give advisers an opportunity to explore what illness or lost income could mean for someone’s finances.
What would happen to the mortgage if earnings stopped? How long would savings cover the bills? What might time away from work mean for family plans or a future pension? The aim isn't to frighten people or turn every milestone into a sales opportunity, but to make the risks tangible and help clients decide whether cover belongs in their plans.
That means starting with someone's circumstances, not a product or premium. But it isn’t easy. Optimism bias makes us accept that illness or injury happens without believing it will happen to us. By contrast, a monthly premium feels like an immediate expense. Advisers can help clarify the trade-off: not just what a policy costs, but what someone could afford to lose without it.
AMI’s findings underline how closely protection advice remains tied to homeownership: 67% of homeowners have received advice, compared with 41% of renters. More than four in five consumers with no protection say it’s because they don’t have a mortgage. We need to reach people beyond the mortgage journey, too.
Bringing protection into the wider financial picture
Our role as a technology provider goes beyond making applications faster or easier. Technology can bring together information about borrowing, income, dependants and long-term plans, helping advisers spot protection needs and freeing up time for conversations.
AI can take this further, helping advisers find information, explain complex policy features and handle repetitive tasks. Used well, it can surface insights and prompt better questions, while leaving professional judgement with the adviser.
Data can also show who protection is reaching - and who it might be missing. Our application data offers an insight: in 2025, “Manager - admin only” was the most frequently selected occupation for income protection applications, despite more than 2,000 occupations being available. Medical and managerial roles also remain among the most common applicants.
Are we reaching the full breadth of the working population, including people with less predictable incomes, different working patterns or no employer benefits? Better data can identify gaps and where our processes are inadvertently creating barriers.
Protection is a continuing conversation
Taking out a policy shouldn’t be the last time someone thinks about protection. A new job, growing family, bigger mortgage or change in income can alter the cover they need. A policy once fitted a few years ago may no longer be enough, and people need to understand its exclusions and limitations.
Regular reviews and clear explanations keep cover aligned with changing circumstances. Technology can help advisers maintain an up-to-date view of clients and identify when a conversation is due.
At Iress, we’re supportive of the FCA’s consumer engagement initiative led by the Protection Distributors Group. Alongside our Protection Forums, we want protection to feature in conversations throughout people’s lives.
Progress should be measured not just by policies sold, but by whether more people recognise their needs, access advice and remain protected as life changes.
We all have a role in keeping protection front of mind: insurers through relevant products, advisers by making the need real for their clients, and technology providers by making good advice easier to deliver. The more protection features in conversations about people’s lives and financial plans, the less likely it is to be overlooked until it’s too late.
Because you can’t buy protection you’ve never thought about.
