Two years after its introduction, Consumer Duty has proven to be more than a regulatory update. It’s sparked a fundamental shift in how the protection industry approaches client advice, outcomes, and overall value. Rather than acting as another compliance headache, it has become a driver of positive change, encouraging advisers and providers to focus on what truly matters: delivering meaningful financial security that meets clients’ real needs.
At its heart, Consumer Duty moves the industry away from a rigid, rules-based system and towards an outcomes-focused mindset. As Keith Richards, CEO of the Consumer Duty Alliance, explained in our latest podcast episode, this change gives firms the freedom to “throw the tick boxes away” and prioritise genuine client outcomes. Previously, advisers often found themselves producing lengthy, 75-page suitability reports that added little value and were rarely read. Under the new approach, simplifying advice is encouraged, especially if it helps clients better understand and engage with it.
For protection advisers, this shift has led to a major rethink in how income protection is discussed. Rather than positioning protection as an afterthought to mortgage advice, many advisers now place income security at the core of financial planning. It’s a logical step – if income stops, most other financial goals are at risk. As one adviser put it, “We naturally placed income at the top of the tree because we recognise that to achieve any financial goal, clients first need to protect their cash flow.”
The way advisers talk about protection is changing too. The conversation is moving away from product features and towards client goals. Instead of focusing on technical policy details, advisers are exploring what clients want to protect — their lifestyle, their family, their home. These are outcomes people relate to emotionally, not just financially. As adviser Jiten Varsani explained, “Don’t talk about income protection. Talk about planning for financial security. The product means nothing. It’s about making sure that if the worst happens, I can still pay my bills, buy food, and maintain my lifestyle.”
Consumer Duty has also brought a broader understanding of vulnerability. It’s no longer seen only as a permanent condition, but as something that can emerge at any point in life – during illness, a relationship breakdown, redundancy, or even the birth of a child. This shift is leading advisers to communicate more clearly, break complex advice into manageable pieces, and check that clients truly understand their options before making decisions.
Perhaps most importantly, the regulation is encouraging a more holistic approach to advice. Protection specialists are thinking about broader financial planning, while investment and wealth advisers are addressing protection gaps. Many firms are now building stronger referral networks to offer joined-up advice across all areas of a client’s financial life.
The claims experience has also come into sharper focus. Providers are improving their processes, using digital tools, and working to make claims easier for clients and beneficiaries. There’s growing recognition that the real test of a protection product comes when a claim is made and that moment should feel supported, not stressful.
For advisers looking to align with Consumer Duty in a practical way, several actions stand out:
- Redesign discovery meetings to explore clients’ broader financial goals
- Focus on outcomes rather than just products
- Break advice into digestible steps
- Use everyday language that resonates
- Build referral partnerships with advisers in other areas
Looking back over the past two years, it’s clear that Consumer Duty is raising standards and delivering better results for clients. It’s not just a box-ticking exercise – it’s reshaping how protection is positioned, discussed and delivered. The long-term result should be more clients with the right cover in place, and greater trust in the value of professional advice.
