Write it or refer it: Protection for HNW clients

The 2027 inheritance tax (IHT) changes are fast approaching and will have a significant impact with an estimated 10,500 estates paying IHT for the first time, and 38,500 paying more than they otherwise would have [1].  Advisers are under increasing pressure to ensure their clients’ protection strategies are not just reactive, but robust and forward-thinking. 

It’s clear that protection advice is no longer a “nice to have”- it’s a critical part of holistic financial planning, especially for High Net Worth (HNW) clients.

Networks are increasingly championing the “write it or refer it” approach, encouraging advisers to either handle protection themselves or pass it to a specialist. But for protection advisers, this shift presents both opportunity and challenge. The decision isn’t always straightforward, it demands a nuanced understanding of client needs, adviser expertise, and the long-term value of a well-structured referral process.

Why referrals matter more than ever

Consumer Duty has sharpened the focus on delivering good outcomes, avoiding foreseeable harm, and ensuring clients are financially secure. Protection advisers are uniquely positioned to support these goals, but only if the referral process is robust, collaborative, and client centric.

Referrals aren’t just about compliance. They’re about client wellbeing, relationship building, and long-term financial planning. When done well, they can help:

• Ensure clients receive tailored protection advice from specialists 
• Strengthen trust between adviser and client 
• Safeguard wealth plans from being derailed by illness, death, or income disruption 
• Improve reputation among professional networks 

The pros and cons for protection advisers

Whether you’re a specialist or generalist, the decision to write protection in-house or refer to a specialist is rarely clear-cut. For HNW clients, the right approach depends on adviser capability, client expectations, and the complexity of the case.

Writing protection in-house
Writing protection in-house offers several advantages for advisers, particularly when working with high net worth clients. By managing the process themselves, advisers maintain continuity and control over the client journey, which can be especially reassuring for clients who value discretion and consistency. This approach also allows advisers to draw on their deep understanding of each client’s financial goals and family dynamics, enabling them to craft highly personalised protection solutions. Moreover, keeping protection in-house helps to strengthen the adviser-client relationship, reinforcing the adviser’s role as a trusted partner and integral part of the client’s long-term financial planning.

However, writing protection in-house is not without its challenges. High net worth cases often demand bespoke structuring and detailed underwriting, making the process both time-consuming and complex. Without specialist expertise, advisers may inadvertently overlook opportunities or deliver solutions that fall short of what’s possible for the client. There’s also the ever-present risk of compliance missteps; protection advice must meet stringent regulatory standards, and any errors can have serious reputational or legal consequences for both the adviser and their firm.

Referring to a protection specialist
Referring protection cases to a specialist can bring significant advantages, particularly for complex high net worth needs. Protection specialists offer deep product knowledge and access to niche solutions that may be beyond the reach of a generalist adviser, ensuring clients benefit from the most suitable and sophisticated options available. This approach also allows advisers to focus their time and energy on core areas such as investment or pension planning, improving overall efficiency. Additionally, many networks have established compliant referral frameworks and pre-vetted specialists, which helps to reduce both risk and administrative burden.

There are potential drawbacks to consider. If a referral is not carefully framed, it can feel transactional to clients, especially those who expect a seamless, continuous relationship with their adviser. Advisers may also feel a loss of oversight and connection to the outcome if communication with the specialist is not seamless. Furthermore, without a structured and well-managed process, referrals can sometimes stall, leaving clients unprotected and advisers exposed to reputational or compliance risks.

Final thoughts

The financial landscape is shifting for HNW clients. This means advisers must be proactive in their protection conversations. Whether you choose to write protection or refer it, the goal remains the same: ensuring your clients are protected, informed, and confident in their financial future.

For HNW clients, this means delivering tailored solutions through trusted relationships. By embedding protection into your servicing model and leveraging specialist support where needed, you can elevate your value proposition and safeguard client outcomes.

Sources

1. Inheritance Tax on pensions: liability, reporting and payment — Summary of responses - GOV.UK Published on 21 July 2025. Contains public sector information licensed under the Open Government Licence v3.0..
2.  Ad Lucem, “Reframing Protection: For Wealth & Business Advisers,” Nov 2025