The Association of Mortgage Intermediaries (AMI) has reported it is in talks to potentially create a protection-specific focus within the body. Many in the industry have supported the move, but what necessary results would such a body need to produce to justify its formation?
Steve Wanstall, head of sales, British Friendly Society
Recent proposals to establish a protection trade body with the backing of key stakeholders such as Aviva and LifeSearch has to be a step in the right direction, especially as protection sales underpin any meaningful long-term financial planning.
Early signs indicate the body will have the strong unified voice needed to provide the credibility required to justify its formation and achieve the support it deserves.
The outcome will simply be measured by how the industry can generate and apply the momentum required to increase consumer engagement by improving clarity and a deeper understanding of the protection products available to them.
On behalf of its members a real moment of truth will be gauged by how it prioritises, engages and delivers tangible results with the pertinent issues which the industry is up against.
Building consensus with members will take a strong collective voice to demonstrate the influence needed across every level of the industry. Done successfully it could have the muscle needed to inject pace and generate a sense of urgency which has been lacking.
With the strong pedigree of support this initiative has already received we see this as an opportunity to provide a powerful platform for its members by ensuring their views, concerns and barriers are fully considered.
How the trade body can successfully cascade the outcomes to the end user will be a key challenge, but many will agree that with full industry representation the time is right to give the protection industry more teeth.
Chris Hulme, director, The Clayton Hulme Partnership
Protection always seems to be the poor relation in adviser business, particularly those that count themselves as wealth managers or IFAs focusing on investment.
We have bodies to represent mortgage brokers, IFAs and even general insurance and there is perhaps a place to represent the protection industry.
AMI would be well positioned to take this up as a large amount of protection is sold through mortgage brokers. The body will need to have real focus, because the Association of Professional Financial Advisers has been criticised for losing view of its own remit, and even that has a heavy weight towards adviser investment business.
This trade body will have a reputation in the market with policymakers and government and this is very important because there is a lot to be done about consumer awareness. This is especially important now because of all the welfare reforms.
The body will have to generate results to justify its formation. It needs to be led by current advisers in the industry with face-to-face client experience now, not former advisers talking about how it used to be.
It could be a sub-committee scenario with AMI or perhaps a spate organisation like Association of Protection Intermediaries under its umbrella. Its operation does not matter but it needs its own brand.
From a membership point of view AMI perhaps would look at it as joined membership for both mortgage and protection advisers.
