The Intermediary –- May 2026 - Flipbook - Page 13
due to the advent of the Consumer Duty, bridging
the protection gap for younger people fits within
a wider tapestry of broker responsibility.
Smith says: “I genuinely believe brokers play a
key role in closing the protection gap, as many
Protection
In Numbers
younger clients simply haven’t had it explained
to them properly before. For me it’s about
keeping things clear and relatable, so I take the
time to help clients understand how it fits into
their overall financial position, rather than just
56%
of Gen Z and 47% of
38%
of Millennials and 36%
Millennials have heard about
critical illness cover via social media
presenting it as a bolt-on product.”
Schofield notes: “For younger borrowers, I’d say:
don’t wait until something goes wrong to think
about protection. You insure your phone and
your car – your income and your health are far
of Gen Z would prefer an
enhanced critical illness plan, while 11%
more valuable. Even a modest level of cover can
of both generations would pay more for
make an enormous difference when life doesn’t
broader protection
go to plan.”
For brokers and advisers, Schofield stresses
the importance of not underestimating younger
clients, saying: “They’re often highly engaged and
60%
of both Gen Z and Millennials
cite personal health
keen to learn, as long as we speak their language
vulnerability or NHS-related concerns as a
and respect their circumstances.
key driver for critical illness cover
“If we focus on education, transparency, and
building long-term relationships, we can help
a generation that has faced a lot of financial
headwinds to build real resilience.”
When tailoring the advice approach for any
cohort, younger generations included, it is also
important to go to the source. Rather than
51%
of Gen Z and 46% of Millennials
say income protection feels more
relevant when everyday health conditions are
covered in the policy
presuming to know what will work, Lakey says,
engaging Gen Z and Millennials will come down
to “genuinely listening to younger people.”
He continues: “Their financial reality – juggling
rent, insecure work, climate concerns, social
pressures and digital life – is quite different from
40%
of Millennials and 42% of Gen
Z want income protection that
can move with them if and when their work
situation changes
that of older generations when they were the
same age.”
In this new normal, alongside greater
education and awareness, Schofield warns that
58%
of Gen Z and 56% of
Millennials would prefer long-
protection itself must become “more flexible and
term income protection that pays out until
easier to understand,” fitting around people’s
recovery or retirement, or short-term cover
lives, rather than the other way round.
with a route to extend
Mohammed adds: “Flexible cover,
straightforward underwriting, digital servicing
and the ability to adjust policies as life changes
will all help protection feel less rigid and
more compatible with how younger people
actually live.”
The risks faced by younger borrowers are
immediate and evolving, making protection
more important than ever.
Every conversation between adviser and
client is a chance to bridge the gap between
vulnerability and security, and to provide advice
that will continue to be relevant and supportive
65%
of Millennials and 64% of
Gen Z feel positive about
rehabilitation and return-to-work support
20%
cite affordability as the most
common reason for not
having income protection, while 14% do not
understand how income protection works,
and 13% do not trust that insurers will pay out
for clients well into the future, no matter how
their circumstances change.
Source: CIExpert
May 2026 | The Intermediary
