The Intermediary – January 2026 - Flipbook - Page 65
P RO T E C T I O N
Opinion
Emotional
intelligence, not
artificial intelligence
I
f the UK mortgage and
insurance sector has a longrunning paradox, it is that
we live in a country where
millions of households rely
on debt to sustain their
biggest commitments yet a significant
proportion remain financially
vulnerable should illness, injury or
loss of income strike.
The Association of Mortgage
Intermediaries’ (AMI) latest
‘Protection Viewpoint’ highlighted
that gap. Despite high consumer trust
in advisers, protection uptake remains
stubbornly low.
In a world shaped by data,
automation and artificial intelligence
(AI) driven personalisation, it is
tempting to believe that technology
alone will close that gap. But the
reality is more human.
Protection is not simply a product
sale but an emotionally loaded
conversation about resilience and
the unpredictability of life. AMI’s
analysis confirms what advisers see
daily: the protection gap persists, in
part, not because consumers believe
insurers will not pay out – claims
statistics overwhelmingly show they
do – but because people struggle to
internalise their own vulnerability. In
behavioural terms, the protection gap
is driven by optimism bias – ‘it won’t
happen to me’ – present bias – ‘I’ll sort
it later’ – and the simple discomfort of
imagining worst-case scenarios.
AI can identify the signals of
vulnerability and protection need, but
it cannot replace the human-centred
conversations required to dismantle
these defences.
I think it is a fair bet that a customer
never buys income protection because
a chatbot deemed them a ‘high-risk
persona’. They buy it because an
adviser has helped them visualise
CRAIG HALL
is director, strategic
prtnerships, financial services
at LSL Property Services
what would actually happen if income
stopped, and how small, structured
payment commitments today can
safeguard much larger ones tomorrow.
Personal, not triggering
Protection discussions require
empathy and the ability to translate
financial risk into personal relevance
without triggering fear.
A good adviser listens for the
subtext. The client who says, “I’m
healthy; I don’t need cover,” might
actually be saying, “I’m worried about
cost.” Borrowers who dismiss income
protection may be conveniently
ignoring the pressures on income
brought about by the rising cost
of living.
AMI’s report stresses that advisers
feel more supported than ever
by providers, but many still lack
confidence in navigating emotionally
complex conversations. If the industry
wants to shi the dial, investing in
adviser training around behavioural
coaching and emotional quotient (EQ)
led advice may prove as important as
product innovation.
Time changes all things
One of the strongest messages within
AMI’s publication is that life does
not stand still. Mortgages shi.
Families grow. Jobs change. Financial
resilience rises or falls with each new
responsibility.
Too oen, protection is treated as a
single-point transaction rather than
an evolving structure that should flex
with the customer’s life. This is where
advisers who already sell protection
need beer tools.
The role is not simply to ‘sell’ but
to steward clients through evolving
commitments helping them revisit
cover levels, understand offseing
risks, and see protection as a long-
term financial hygiene measure.
While advisers remain the frontline
of consumer understanding, closing
the protection gap cannot fall on them
alone. AMI has been vocal about the
need for wider public education that
demystifies protection and provides
clearer signposting around support.
There is a role for Government
here, particularly in articulating
the limitations of state safety nets.
Many consumers still assume that
statutory sick pay, employer benefits
or the welfare system would carry
them through extended illness or
loss of income. The reality is far
more precarious.
Year aer year, UK insurers pay
out billions in life, Critical Illness
and Income Protection claims. Yet
this message rarely cuts through
the noise of consumer mistrust or
misunderstanding.
If the industry wants to build
belief, it must communicate in
human terms: real stories, real
outcomes, anonymised but relatable.
Data changes minds; stories change
behaviour.
As AMI’s Protection Viewpoint
makes clear, advisers who are
confident and emotionally auned can
transform consumer understanding
of risk. But they cannot do it alone.
A coordinated effort that includes
government signalling, industry
education, provider transparency
and adviser empowerment will be
essential.
Protection works. Claims statistics
prove it. The task now is to ensure
more households understand that
before life forces them to learn it the
hard way. ●
January 2026 | The Intermediary
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