PARADIGM PROTECTION NEWSLETTER AUTUMN 2026 www.paradigm.co.uk/protection
CONTENTS 4 Paradigm Protection Services Protection Market Update Mike Allison 8 LV= Making Protection Personal 15 Paradigm A Practical Guide to Creating PDFs Amarjot Butcher 12 Paradigm Artificial Intelligence: What it Means for your Firm David Ryder 14 Paradigm The Agency: Maximising the Value of your Firm on Exit... Whenever it Comes David Ryder
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Mike Allison Director of Protection Protection Market Update 4 Welcome to the latest edition of the Paradigm Protect Newsletter. I hope you all had a great summer and got to take at least some advantage of the weather. While the sunshine was welcome for most, some became victims of the climate change that is almost certainly now upon us. We have seen moorland fires before during long dry spells, but the scenes in the Midlands, where homes were burnt to the ground, are not what we have been used to. During 2026, many wildfires have occurred across the UK, fuelled by record breaking heatwaves. As of 10th August over 57,720 acres have been burnt, with 72 fires larger than 74 acres being recorded. Several of these fires forced evacuations and damaged property and protected habitats, with many requiring multi-agency responses as fire authorities raised risk levels and issued warnings amid deteriorating conditions. How the financial industry responds to this will undoubtedly affect insurance in the future, along with our responsibilities as advisers and the quality of the products we recommend. The table shows what insurance policies typically pay if you cannot occupy your home due to certain perils, so it is worth checking what the policies you normally recommend provide: I have even heard lenders suggest that the future of lending in certain areas could involve individually risk-rated interest rates. As advisers who select insurance products for clients, this should encourage us to think beyond a tick-box exercise, and it will reward those who take a genuinely advisory approach to general insurance. This points to the broader theme covered by LV in this month's edition: building financial resilience across a client's lifetime, rather than advising on products that address only shorter-term needs. The question is how many of us work through all the individual risks that clients may face as homeowners or renters. It can be a difficult topic to raise, especially when the financial pressures at the first-time buyer stage are already high. The regulator expects us to make clients aware of the risks they face, but those risks are many and varied, and clients will not always want to confront them, rank them by importance or pay to cover them. Helping them build a picture of financial resilience is therefore important. Standard Comprehensive Fixed Monetary Cap £25,000 – £50,000 £75,000 – £100,000 Percentage Based Cap 20% of buildings sum insured 30%+ or uncapped/ extended limits Standard Inclusions Rent/hotel, pet boarding, storage Plus travel, extra food, parking
Continued on next page... 5 With the economy facing uncertainty from government fiscal pressures, global geopolitical tensions and the emergence of AI, clients will increasingly need to prioritise. I am pleased to report that we have added ASU back into the mainstream product range, particularly at a time when fears over unemployment are rising, and it is a product that warrants discussion. The “U” of ASU is now a concern for everyone, not just those in traditional blue-collar industries. More on that below. We are also seeing providers make a number of adjustments to their existing product ranges in response to market opportunities. It will not be long before we welcome a new life insurer to our panel, as Beagle Street begins its long-anticipated full market rollout. We have enjoyed a positive few months in terms of growth, with more wealth firms taking up inheritance tax (IHT) opportunities with their clients. On that point, and I have said this many times, if you are a mortgage adviser with clients whose wealth portfolios are held elsewhere, please do not assume that the IHT conversations are being picked up. Your fact-finding will already identify clients whose asset levels bring them into IHT territory, even before pension pots are added to the calculation next year. We should also remember that parental gifts towards house purchases become Potentially Exempt Transfers (PETs) as soon as they are made. It is worth at least outlining the risks and the solutions available, such as gift inter vivos policies. The Market As we write, the FCA has just published its Final Report into the distribution of protection products. We will be looking closely at the implications over the next few days, so look out for further bulletins. For now, one of the key highlights is the FCA's focus on tackling the protection gap. A short synopsis from the report follows: The FCA view on tackling the protection gap: 58% of people hold no protection products, and 59% of those without protection have never considered their needs. The gap appears driven mainly by consumer factors, including low awareness, poor understanding and behavioural biases, and firm factors, including journey friction, underwriting complexity and limited suitable products for people with complex needs. We found little evidence that regulation is a major cause, though some firms cited perceived barriers to innovation. This leaves consumers and families financially vulnerable after unexpected life events, increasing hardship and reducing resilience. Renters, self-employed and gig economy workers, lower-income consumers and people with pre-existing medical conditions appear most affected. Our remedies combine FCA, industry and wider stakeholder action: prompts, awareness and adviser engagement to address demand-side issues; and innovation, better medical-record access and regulatory clarification to address supply-side barriers. We will also improve claims experience by promoting trusts and nominated beneficiaries through consumer prompts, awareness and adviser engagement, alongside existing rules.
6 Product Entrants and Enhancements Beagle Street Beagle Street have been working with a number of intermediaries to test their proposition in the intermediary market. It has been provisionally agreed that they will launch with Paradigm Protect on 19 October, with a session in our webinar on 20 October. Initially the offering will cover life and/or critical illness, but they take a distinctive approach to loading for non-standard lives, and you will soon start to see them appearing on the portals. They plan to enhance the proposition significantly before the end of the year, so we will be hearing more from them in Q4. Walsham Brothers ASU As mentioned earlier, we have added an ASU product (including U only) to the range so that you can offer a broader choice of protection. Details are set out below. 1. Product overview and parties The policy is designed to meet the policyholder's monthly mortgage repayment, plus an allowance for additional household outgoings, if they are unable to work due to an accident, a sickness, or unemployment, depending on the level of cover chosen. Cover requires the policyholder to be a named party on a residential mortgage agreement for a property in the UK that they permanently reside in. 2. Cover options Three core levels of cover are available, plus an optional Carer benefit that can only be added where Unemployment cover has been selected. • Accident and Sickness only • Accident, Sickness and Unemployment • Unemployment only • Carer cover (optional add-on – available only alongside Unemployment cover; pays if the policyholder gives up work to become a full-time carer for an immediate family member and is in receipt of Carer’s Allowance) 3. Eligibility From the policy start date, the policyholder must, throughout the qualifying checks: • Be named on a residential mortgage agreement that started no more than 6 months before the policy start date; • Be a UK resident, legally entitled to and working in the UK (continued cover is possible for Civil Servants posted abroad to a British Embassy or Consulate); • Be aged 18 or over and under 65; • Be in work – employed or a contract worker – for 16 hours or more per week, and have been in continuous work for at least 6 months (employed) or 24 months with the same employer (contract worker); • Be named on the residential mortgage for a UK property that is solely occupied by them and their immediate family as their permanent main home. Details of the excess periods are available from us. We have tried to make the cover as straightforward as possible to arrange: the TOBA sits with Paradigm, and you simply need a password to access their website to complete cases. Quotes are available via Solution Builder and Iress National Friendly National Friendly have announced that they are adding life cover to their income protection offering, and this is now live for Paradigm firms. These are available across a range of joint life and single policies. Alongside their competitive and comprehensive income protection product, this is a valuable addition to their range and well worth investigating. Friendly societies can take a different view on claims payments given their mutual and memberbased status, and this is worth considering when reviewing the suitability of a product.
The Unisure Group As a reminder, we launched with the Unisure Group on our group risk panel last year, and they are now our dedicated provider, delivering strong service levels together with a range of enhancements. • Highly competitive pricing • Administration and renewal documentation issued on time • Quote turnaround of up to 48 hours, with direct underwriter access • Free Cover Levels available (details provided on request) • Employee Assistance Programme delivered via Square Health’s Help@Hand In association with Scottish Friendly, the product is 100% reassured by Allianz. The proposition is currently available for group life, and group income protection will follow later this year. Mandatory Advice for FTB’s Campaign You may have seen in the financial press recently that we have launched a campaign highlighting the need for mortgage advice to be given to first-time buyers. The FCA’s vulnerability guidance (FG21/1) defines vulnerability as circumstances that make consumers especially susceptible to harm, and we believe this is a strong rationale to support advice being mandatory for those in this situation. We have been considering this campaign for some time. Following the Mortgage Rule Review in July last year and the findings of the Pure Protection Market Study, we believe this is a good time to highlight the need for it, both from a mortgage and a protection perspective. I would ask that you spend a few minutes reviewing the document and lend it your support, both individually and as an organisation if possible. It already has the full support of AMI as well as several prominent lenders. If we can get the protection community behind it as well, it will help drive better outcomes for clients. GI Enhancements to add commercial value to firms Now that the Renters' Rights Act is upon us, I want to highlight some of the provider products that have adapted to open up opportunities for you. With the removal of Section 21 "no-fault" evictions, regaining possession may take longer, increasing the risk of lost rental income if a tenant stops paying rent Landlords may also need to rely more heavily on formal possession proceedings and dispute resolution, which makes legal expenses cover more valuable. Legal expenses cover is a common feature, or optional add-on, on landlord insurance policies. It helps protect against the costs of possession proceedings and tenancy disputes, giving access to legal support when it is needed most. Paymentshield are close to launching a standalone rent guarantee policy with some distinctive features, so please look out for it. Events I would also like to draw your attention to our upcoming events this year, which your feedback tells us are a valuable source of information. Have a look at the schedule 7 PARADIGM COMMENT As always, thank you for your support of Paradigm Protect. Your continued use of our whole-of-market proposition, with no loaded premiums, not only aligns with the FCA's view but also gives your clients the best possible choice of providers at the best possible premiums. We will continue to broaden the products and services we offer and to keep what we do market-leading.
First time buyers Buying your first home is not an insignificant financial obligation to say the least. First time buyers have usually stretched themselves financially to get on the ladder. That’s exactly why they’re so vulnerable to income shocks. Our research told us that: • 52% of first-time buyer couples need both incomes to cover essential outgoings. • 2 in 5 spend 20% of their monthly income on debt excluding mortgages. • Half would only last up to 2 months without their income. Consider reframing your conversations to tap into the emotion of their home. Highlight that securing their home is just as important as purchasing it in the first place. If cost is a concern, strip it back to essentials: “Let’s review how we can protect you so you can stay in this home – at the very least, the mortgage and main bills?” Parents of younger children Let’s start with families where there are younger children at home. We know that parents have no end to their worry and concern when it comes to their family. Our Reaching Resilience research highlights just how significant this is: • Almost a third feel they wouldn’t cope financially if they were diagnosed with a critical illness. • 80% are worried about the impact of their own and their families’ financial security should they experience a major health problem or injury. Protection Partner Article Making Protection Personal 8 If you’ve ever come away from a client meeting feeling your protection advice didn’t quite land, you’re not alone. In our Reaching Resilience research, we explored how needs, worries and perceptions of protection differ between key client groups. It gives you a practical lens for where to focus each conversation, so it feels more relevant, human and personal.
The key to making a conversation feel personal is to talk to that instinct of wanting to make sure their family would be looked after should the worst happen. To bring the conversation to life, consider asking your clients: “If you couldn’t work for six months, what would you want life to look like for your children?” This can help to focus the conversation on the kids, not the cover, and get your clients to consider who else relies on their income. 9 Parents of older children Then we’ve got parents of teens and young adults. Many are still financially supporting children for longer. Whether that’s through sixth form, university, apprenticeships or that first step onto the property ladder. Let’s explore what the research shows us about this group: • 1 in 4 have less than £1,000 in savings. • 30% would like to have critical illness cover in place. Consider asking your clients about the impact to significant milestones in their child’s life. For example, “If your income took a hit, would your child’s ability to get by at university be impacted?”. You can also reinforce your recommendation by bringing to life the additional peace of mind offered through protection: “Let’s look at children’s cover that runs until your youngest is through education or started their career.” SAVINGS
10 Protection Partner Article Self employed clients Self employed people are normally driven by work. After all, they’re invested in the success of their business. While being selfemployed can have its’ benefits, it comes with its own unique risks. No employer sick pay. Limited state support. If they can’t work, income can drop to zero very quickly. This is explored in our research: • 1 in 5 self-employed workers would have to continue working through illness or injury to make ends meet. • 22% would last less than a month without their income. • Over a quarter have less than £1,000 saved. You can open the conversation up to this specific client by talking about business and lifestyle, not just “insurance”. Consider asking your client: “If you couldn’t work for a few months, how long could you keep up with the bills at home and the commitments in the business?” This helps to focus the discussion for what the impact would be for them. For this client, you’re helping them protect what they’ve built, so a short term illness doesn’t become a long term financial setback. Resources to make it personal Reaching Resilience is packed with insights to help you tailor how you deliver your advice. It gives you a good starting point to understanding your client’s mindset, and although each client you encounter has their own unique requirements for protection, it’s a good indication of where you can focus the conversation. Explore the Reaching Resilience hub for the full report and other handy resources to help you position protection. Unless stated otherwise, the data used comes from a survey of 2,535 nationally representative UK workers conducted for LV= by Opinium between 28 October 2025 and 7 November 2025.
First-time buyers are among the most vulnerable consumers in the mortgage market, and the case for protecting them is clear, evidence-based and increasingly hard to ignore. FIRST TIME BUYERS DESERVE BETTER. Paradigm is calling on the FCA and the wider industry to make regulated mortgage advice mandatory for all first time buyers. “A proportionate regulatory evolution under Consumer Duty.” Endorsed by: Since launching our campaign calling on the FCA to make regulated mortgage advice mandatory for all first-time buyers earlier this month, the response from across the industry has been remarkable. We have published a full policy paper, secured significant press coverage and gained the formal endorsement of AMI, whose CEO Stephanie Charman has backed the case for mandatory advice as a matter of urgency. Many of our members have already signed the pledge, and the momentum behind this campaign is growing by the day. We’re asking all Paradigm members to consider adding their voice. Read the paper, sign the pledge, and help us make the case to the regulator that the time for change is now. Click here to find out more and sign the pledge. Thank you for your support.
Paradigm Protection Artificial Intelligence: What it Means for your Firm David Ryder Head of Proposition, Paradigm Consulting 12 What this means for your firm There are no new FCA rules, but there is a sharper focus under the existing ones. The FCA is clear on several points: • You own the outcome. You remain responsible for client outcomes whoever built the tool. • Oversight must be proven. Human oversight, interaction and intervention need to be identified and evidenced, not assumed. • Clients already trust AI. Many are taking financial cues from AI tools, so check client understanding. AI can often hallucinate, and recent research suggests a high percentage of tools get things wrong on financial matters. • The advice gap is both an opportunity and a threat, with the risk that clients bypass the human adviser altogether. • Fraud, cyber risk and the governance burden on smaller firms are front and centre. AI is already built into tools that many mortgage and protection firms use every day, and the FCA has recently set out, via The Mills Review, how it expects the market to change.
Five immediate actions The FCA has set out five things firms using AI should do now: 1. Confirm which Senior Manager owns AI use, and record it. 2. List every AI tool in use, including advisers' and staff use of general purpose tools such as ChatGPT, and what client data, if any, they touch. 3. Complete due diligence before adopting any AI tool. 4. Define the human role: who checks the output, and against what? 5. Refresh your fraud and cybercrime controls. 13 Look out for Paradigm's coverage of the FCA's good and poor practice examples, which are expected from the regulator later in 2026.
Paradigm Protection The Agency: Maximising the Value of your Firm on Exit...Whenever it Comes David Ryder Head of Proposition, Paradigm Consulting 14 Pre-sale due diligence, before the buyer does it Every acquirer will run detailed due diligence. We can run it first, on your side of the table. It typically covers a sample-based review of advice files and suitability, complaints, adviser competence and supervision records, Consumer Duty evidence, financial promotions and marketing material, permissions and regulatory reporting, and the quality of your client and income MI data for Consumer Duty purposes. You get a clear picture of where the firm stands, a prioritised list of fixes and a realistic view of the time needed to make them. That is often the difference between answering a buyer's questions with confidence and negotiating at a discount. Questions worth asking yourself • Have you thought about what you want the end result to look like for the business? • If a buyer ran due diligence on your files next month, what would they find? • What keeps you awake at night from a compliance point of view? • How much of the business still depends on you personally? The end result does not have to be a sale. Wherever you are on that journey, we can help you build a firm that is worth more and easier to run. To talk it through, visit The Agency page and then speak to your usual Paradigm contact. We have refreshed The Agency page on our website, and we wanted to bring this element of our proposition to your attention. The Agency helps firms plan and deliver an exit: building the business, preparing it for sale, maximising value at exit and then finding a buyer. Whether you are ten years away (or greater) from stepping back, within five years of it, or simply want to know where you stand, there is something here for you. Value starts with compliance Buyers pay for certainty. One of the biggest things that erodes value, delays a deal or stops it outright is uncertainty about the quality of past advice and the records behind it. Clean, well evidenced files, suitable advice, clear disclosure and a documented Consumer Duty approach make a firm straightforward to buy. Without them, a seller can face price adjustments, deferred consideration, extended warranties and indemnities, or no offer at all. This is exactly where Paradigm Consulting works with firms every day: file reviews and suitability checks, consumer outcomes evidence, T&C records, SM&CR and governance, financial promotions sign-off and technical support on complex cases. Start thinking about selling five years out The firms that achieve the strongest outcomes usually start preparing around five years before they want to sell, because the things that lift a valuation take time to bed in. That means remediating historic advice issues properly, embedding consistent processes across every adviser, reducing the firm's reliance on the owner and tidying the client bank. Firms that come to market with only twelve months' notice often end up selling on the buyer's terms rather than their own.
15 Paradigm Think Piece A Practical Guide to Creating PDFs Creating a PDF takes only a few seconds, but it can significantly improve how information is presented to clients. By helping ensure documents remain consistent, accessible and easy to review, PDFs can play a small but valuable role in supporting good consumer outcomes and demonstrating a customerfocused approach to communication. This aligns with the FCA's focus on firms delivering information that consumers can understand and use effectively. The FCA expects firms to communicate information in a way that consumers can understand and act upon. As part of Consumer Duty, firms should consider whether their communications are clear, consistent and presented in a format that reduces the risk of misunderstanding. Whilst Microsoft Word documents remain a common way of drafting and sharing information, PDFs (Portable Document Format) offer several advantages when distributing documents to clients. Unlike Word files, PDFs preserve formatting regardless of the device being used, helping to ensure that important information appears exactly as intended. How could PDFs help your firm? • Maintain a professional and consistent appearance. • Prevent accidental alterations to documents. • Make important disclosures easier to read and review. • Share documents securely with clients. • Ensure documents display correctly across computers, tablets and smartphones. For firms providing suitability reports, disclosure information, client guides or other customer communications, converting documents to PDF can be a simple way to improve the customer experience and support positive Consumer Duty outcomes. Our top tips • Use meaningful headings to make documents easier to navigate. • Avoid excessive technical language. • Consider whether larger fonts might help some clients. • Check that important information is not hidden within images. • Test the document on a smartphone before sending. • Keep the file size reasonable when attaching to emails. full guide online Amarjot Butcher Senior Marketing Coordinator Open the doc then select File from the top menu. Choose Save As (or Save a Copy). Select the location where you want to save the document. Under Save as type, choose PDF (*.pdf). Click Save. Your document is now saved as a PDF and can be shared with clients or colleagues. If you do not have the desktop version of Office, there is still an easy alternative. Learn more
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