Human advice remains critical in ensuring consumers understand the true value of protection insurance amid a mistrust of artificial intelligence (AI), according to the Association of Mortgage Intermediaries (AMI).
This is particularly important as almost half of consumers drop out of the protection process after receiving a quote while online channels dominate initial searches, AMI’s 2025 Protection Viewpoint Report found.
It also showed advisers may be missing a trick by failing to combat the rise of the finfluencer by resisting the use of social media to connect with consumers.
Understanding the value of protection
The research found almost one in five (18%) of the 3,000 adults surveyed had started the protection journey but abandoned it – a figure that rose to 25% among under-35s.
Almost half (47%) abandoned the process after receiving a quote, with older consumers (55+) and men showing the highest dropout rates of 56% and 52% respectively at this stage.
A quarter (26%) left after the initial application stage, and a fifth (20%) dropped out at the very beginning, after just researching options.
Speaking at the report launch event, AMI chief executive Stephanie Charman (pictured) maintained there was a need for recognising that consumers wanted to take out protection.
“But they need guidance and they need understanding of the value of the purchase – not just today but also in the future,” she said.
Consumers do not trust AI
Online channels dominated as the entry point for consumers when they start the protection journey, with only 24% starting the process by speaking to someone in person.
Often customers started the journey at multiple touchpoints, 31% began via a specific website, another 31% via price comparison sites and 26% via an online search engine.
However, around 70% of consumers said human connection was important at each stage, even the youngest respondents.
When looking at the influence of artificial intelligence (AI), just 35% of all consumers trusted AI to answer protection questions and again only 35% believed it would provide suitable recommendations.
Notably, trust in AI jumped dramatically among under-35s – with 54% and 57% respectively showing confidence in using AI as part of the protection buying process.
However, only 27% of consumers trusted AI to help them make final decisions, suggesting there are limits to algorithmic influence.
Adviser sentiment on AI was mixed.
Just one in five advisers (20%) felt confident using AI in their day-to-day business, and one in four (27%) viewed automation and the rise of AI as a threat to the advice sector.
When asked to assess the role of AI across the protection journey, advisers showed the most enthusiasm for producing client documents (49% positive) and managing application pipelines (39%), but held significant reservations about product recommendations (25% positive, 30% negative) and initial customer interactions (25% positive, 29% negative).
Charman added that what came through the research was that AI and advisers needed to work together.
“That human connection is really important,” Charman added.
“AI is shaping how customers interact with anything they’re looking to do from a financial perspective, but our findings show they have a significant lack of trust.
“Only 27% of consumers trust AI to help them make financial decisions and 71% of consumers say a human connection is vital in helping them with that protection buying conversation.
“That shows that human advice is here to stay, at least for a fairly long time.”
‘Humans at heart of protection’
The report was developed with partners The Exeter, Legal & General and Royal London.
Jamie Page, head of protection distribution at The Exeter, said: “This year’s Viewpoint research reinforces what we see every day. That human connection is still at the heart of protection.
“Even the most digitally savvy consumers want empathy, reassurance and real conversations when making decisions about their future. We believe the future lies in blending smart technology with trusted advice – not replacing it.”
Vikki Jeffries, market development director at L&G Retail, said: “The Viewpoint research highlights a clear opportunity for the industry to evolve how we engage with customers. It’s not just about products; it’s about fostering connection, meaningful touchpoints, and trust to ensure people feel confident in their choices.
“Whether customers start their protection journey online or in person, advisers play a vital role in guiding them through life’s uncertainties and addressing their individual needs.
“Providers must also step up by offering advanced tools, proactive support, and helping firms develop impactful engagement strategies that truly resonate with customers. As an industry, we can make significant progress by listening to customers and adapting to their evolving needs.”
Jon Fuller, protection distribution director at Royal London, added: “AMI’s latest Viewpoint report highlights a critical challenge: too many people begin the protection journey but don’t complete it.
“While the growing influence of AI, especially among younger consumers offers convenience, it’s clear that AI is yet to win over the majority at the final hurdle, as just 27% of consumers trust it to help them make final decisions about their protection needs.
“We must ensure that consumers, especially younger ones, feel confident, informed and supported, whether they’re researching online or speaking to an adviser.
“By working together, we can close the gap between intention and action, helping more people secure the cover they need.”