The protection gap is not a surprise. Treating it as one is.

“This is not mysterious. It is what this market is built to produce.”

clock • 4 min read

Tony Müdd, divisional director - development and technical consultancy, St. James’s Place, argues that disengagement is not the cause of the protection gap, but a symptom of how the market operates.

At the Protection Distributors Group's (PDG's) tenth anniversary, the FCA's Ed Smith said the shock was not the gap. It was that so many people had never considered their needs. They were "not even at first base." There was, he said, "a real level of disengagement." He may be right, but what he is describing a symptom, not a cause. Let's get real. A large protection gap is not new. It has outlived the FSA, RDR, the Duty, several recessions, the smartphone, comparison sites, automated underwriting and every campaign launched to "raise awareness". Products changed. Distribution changed....

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Adviser / Broking

ChatGPT will change the way insurance is discovered

ChatGPT will change the way insurance is discovered

The Google AdWords of the 2020s

Alain Desmier
clock 22 October 2026 • 4 min read
COVER Women in Protection and Health Awards 2027 open for nomination

COVER Women in Protection and Health Awards 2027 open for nomination

Deadline 12 November, 2026

COVER
clock 14 October 2026 • 1 min read
SM Advice adds AI visibility and authority audit service

SM Advice adds AI visibility and authority audit service

AI search visibility and practical steps

Jaskeet Briah
clock 29 September 2026 • 1 min read