Editor's note: This brief was summarised by The Property AI Newsroom from a report by Mortgage Solutions. Read the original article for full details.
FCA partners with industry bodies to boost protection take-up among renters
The Financial Conduct Authority (FCA) has announced a series of programmes designed to encourage more people to consider protection policies. The initiative was announced alongside the final report of the regulator's Pure Protection Market Study.
The FCA has developed the programmes with the Association of Mortgage Intermediaries (AMI), the Money and Pensions Service (MaPS), the Digital Property Market Steering Group (DPMSG) and the Protection Distributors' Group.
What each partner will do
The AMI will improve how advisers discuss protection with clients and shape a consistent approach to how protection is understood, spoken about and recommended. This includes raising awareness of the value and relevance of protection products, making advisers more confident to discuss protection, and encouraging "frequent and consistent" conversation along the advice journey.
The FCA wants this focus directed at under-served groups, such as the self-employed and renters.
The MaPS and the DPMSG will encourage people to think about protection at key moments, such as becoming a parent or buying or renting a home.
Relevance to the property sector
The work will be included in the DPMSG's Digital Property Information Protocol, which supports the government's home buying and selling reform roadmap. The DPMSG's website will cover financial products including mortgages, buildings insurance, contents insurance and pure protection, to help people see protection as part of the home buying process.
The Protection Distributors' Group will produce an awareness campaign targeting people who are less likely to take out a protection product.
Graeme Reynolds, director of competition at the FCA, said: "Competition in protection insurance works well for existing customers. But we're working with partners to increase coverage – so that more people are protected when they or their families need it most."
What it means for letting agents and inventory clerks
Renters are explicitly named among the under-served groups the FCA wants to reach, and renting a home is listed as a key moment to consider protection. Agents and clerks in the lettings sector may therefore see greater emphasis on protection conversations around the rental process as these programmes develop.
Source: Mortgage Solutions