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.
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