Protection Guru, a specialist provider of technical information for protection advisers, has released data demonstrating the commercial benefits advisers gained from using their Protection Guru Pro (PGP) software during the fourth quarter of 2024. The results highlight how advisers can increase their earnings while fulfilling their obligations under the Financial Conduct Authority’s (FCA) Consumer Duty.
PGP is designed to help UK advisers assess the best value across a range of protection products, evaluating both quality and price. This approach allows them to meet their Consumer Duty requirements by identifying products that offer the best value for clients, rather than simply focusing on the cheapest options across life insurance, critical illness, income protection, and business protection.
The data indicates that, on average, PGP users earned an additional £295.60 per policy during Q4/24 by using the software to identify the best value product for each client’s needs, which ultimately led to better outcomes for consumers. The breakdown of increased income for advisers is shown in the table below:
Ian McKenna, the founder of Protection Guru, commented on the data: “First and foremost, our system is about identifying best value for consumers. Any additional revenue to compensate extra work advisers have to do is a fortunate byproduct.”
McKenna continued, “For too long, the industry was guided by the Financial Ombudsman Service to prioritize the cheapest plans over those that represented best value. Consumer Duty changed this, but it puts significant additional burdens on advisers and necessitates changes working practices. This can be a major challenge, particularly when conversations start with price comparison and consumers end up fixated on the lowest price. By assessing quality first, advisers can contrast quality and price to identify best value.”
“We are pleased to demonstrate how delivering on FCA Consumer Duty obligations also can increase adviser income. This should be a huge driver for implementing revised business processes.”
Protection Guru’s data further reveals that plans better suited to consumers’ needs often cost only a few pounds or even pennies more, a key factor in protecting income. The system’s use also shows that 85% of consumers prefer a better value plan over the cheapest one, and these plans are more likely to remain in force as clients understand the value and benefits they’re receiving.
McKenna added a cautionary note for advisers: “The FCA have made it clear that they expect advisers to assess value across all protection products. If you are using a system that only analyzes quality for Critical Illness, are you putting a target on your back when you get a Consumer Duty visit from the FCA?”
“Our service enables advisers to assess value for life protection, income protection, critical illness, family and income benefit, and key person plans at a competitive price. On average, an adviser will make up for the annual license cost by putting two plans a year through our system. After that, every client advised increases revenue.”
