Half of consumers already rethinking cover
Mortgage advisers have been given a dedicated workstream in the FCA's plan to close the protection gap. Aviva research published a day later found that 52% of UK adults have changed how they think about financially protecting the people in their lives, yet 46% have no financial protection in place.
The FCA's final Pure Protection Market Study, published on September 21, found that around 58% of adults have no life insurance, critical illness cover or income protection, and 59% of that group has never considered it.
The regulator said it is not planning new market-wide measures but will take action where firms fall short of requirements.
A new brief for intermediaries
The FCA has asked the Association of Mortgage Intermediaries (AMI) to lead work on improving protection conversations throughout the advice journey and at different life stages, particularly with underserved consumers.
AMI will develop practical support that firms can adapt to different advice models, drawing on findings from its annual Viewpoint research.
Stephanie Charman, chief executive of AMI, said the initiative "is not about creating another initiative or adding unnecessary complexity for firms".
She added that the aim is to give advisers greater confidence and help them have more effective protection conversations with customers.
The Money and Pensions Service and the Digital Property Market Steering Group will prompt people to consider protection when becoming a parent or buying or renting a home, while the Protection Distributors' Group will run a consumer awareness campaign.
The programme targets groups that are disproportionately unprotected, including renters, self-employed and gig economy workers, those on lower incomes and people with pre-existing medical conditions.
The FCA will begin engaging with industry from October 2026, with work starting by the end of the year and meaningful progress expected over the next 12 to 18 months. It will publish a short progress update by the end of 2027.
Consumers thinking ahead of the appointment
Victoria Francis, protection propositions director at Aviva, said buying a home remains one of the most common points at which people discuss protection with an adviser. However, the research suggests many may already be thinking about protection before they reach that milestone.
"For mortgage advisers, this creates an opportunity to build on this consideration and have more meaningful conversations about protecting what matters most to their clients," Francis said.
The Censuswide survey of 2,000 nationally representative UK adults, conducted between June 24 and 26, 2026, found that 65% often think about everyday experiences that only later became significant because they were the last time they happened. Some 72% said these moments had a lasting emotional impact.
The most commonly cited was a last meaningful conversation with someone who is no longer here (41%), followed by the last time seeing a close friend before drifting apart (31%), the last time a parent or grandparent was in good health (31%) and the last time the whole family was together under one roof (30%).
A further 21% recalled the last time their child called them "mummy" or "daddy" before switching to "mum" or "dad", and 21% the last time they carried their child to bed after the child had fallen asleep.
Respondents also wished they had appreciated certain people more, including a parent or parental figure (35%), grandparents (26%), a close friend (20%) and a partner or spouse (18%).
The 52% combines those who strongly or somewhat agreed that such moments changed how they think about financially protecting others, while only 22% are very confident their loved ones would be financially protected if the worst happened.
The FCA's 58% figure covers life, critical illness and income protection, while Aviva's release does not define which products count, so the two are not directly comparable.
Gaps at the point of sale
LV= research reported on September 21 found that 37% of first-time buyers did not recall receiving protection advice during mortgage discussions with an adviser or broker, although more than half of first-time buyers (52%) need both household incomes to cover their monthly outgoings. The research also found that 43% had no form of protection in place.
The FCA's interim report in January identified mortgage completion as a natural trigger point for protection conversations. It attributed the gap mainly to low awareness and a sales process that rarely prompts people to consider cover, rather than to price or product availability.
Aviva's own protection book
Aviva's individual protection sales fell 4% to £87 million in the first half of 2026 on an annual premium equivalent basis, from £91 million a year earlier. Group protection sales rose 6% to £86 million, taking total protection sales to £173 million, up 1%.
The insurer paid nearly £2 billion across its protection lines in 2025, including £63.5 million in individual income protection claims for more than 4,000 claimants. With 1.8 million borrowers coming off fixed-rate deals this year, remortgage cases present another point at which cover can be reviewed.
