The Mortgage Advice Bureau has developed a tool designed to assess a customer’s financial resilience based on their level of protection.
The financial risk assessment tool shows customers how capable they are of bouncing back from life-altering setbacks that would otherwise have a significant financial impact, such as the death of a loved one, a disability, or being unable to work due to ill health.
By inputting basic level information on their financial situation, the tool estimates how likely these shocks may be over the course of an individual’s lifetime, giving an idea of what position they would be in should the worst happen.
This tool empowers customers by providing a basic understanding of their financial situation and the importance of protection before their initial appointment. This facilitates a more meaningful conversation with the broker, as customers arrive informed about their needs and circumstances.
Once relevant information has been inputted, the tool feeds customers back to a conversation with a protection adviser, who can then offer tailored support for their individual circumstances.
The tool also has the capacity to target new customer demographics that may not necessarily be having conversations relating to protection advice, such as those living in rented accommodation.
And from an introducer perspective, the tool can be used to open up conversations with new customers that letting agents or commercial brokers may not necessarily have been able to engage with previously.
From a Consumer Duty perspective of delivering good customer outcomes and positioning protection within an ongoing advice journey, the tool creates additional opportunities for regular assessments regarding the risks they may be susceptible to.
Customers can also update the tool with information as and when their financial situation changes, so that they can take action and liaise with an adviser accordingly.
Andy Walton, proposition director – protection, Mortgage Advice Bureau, (pictured) said: “We’re thrilled to have launched our new financial risk assessment tool, which offers a wealth of benefits for brokers and customers alike.
“The tool recognises the need to help customers better understand and navigate the protection options available to them, regardless of their financial position.
“It offers an engaging, educational user experience, empowering customers to recognise their level of risk and take action to ensure they’re protected against whatever life may throw at them.
“It also helps to connect customers with a protection adviser, who will be able to provide bespoke advice tailored to their specific circumstances.”
