Engaging clients earlier in their financial journey is becoming increasingly important as traditional triggers for protection conversations are delayed. Mike Farrell, Protection Sales and Marketing Director at LV=, shares his view on how the sector can rethink the standard approaches to better connect with younger clients.
Protection is relevant at every stage of life, but engaging clients earlier in their financial journey can help to build financial resilience long before major life events occur. Demonstrating the value of protection sooner rather than later will help narrow the protection gap.
The FCA’s recent Pure Protection Market Study report highlights that protection remains largely “sold, not bought”. As long as this is the case, consumers of all ages will typically only engage with protection when prompted, most commonly at a milestone such as buying a home and arranging a mortgage.
With more young people entering the housing market later due to affordability pressures, these conversations are becoming increasingly delayed.
The sector therefore needs to find better, innovative ways to engage younger clients earlier, including while they are still renting, and to rethink how it reaches them in a social media and AI-driven world. Previous attempts to target the rental market have struggled to gain traction, highlighting the need for clearer, more accessible communication.
Younger consumers are not searching for “income protection” but for straightforward answers to real concerns, such as what happens if they are unable to work.
There is also a strong case for more flexible, tailored products that reflect shorter-term financial horizons, rather than traditional long-duration cover. Alongside this, earlier engagement through financial education is key.
Embedding financial education within the national curriculum could play a more meaningful role in helping younger people understand the value of financial resilience earlier in life.
