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24
Protection
In the
spotlight
Mortgage Introducer meets the new ceo of
Paymentshield, Tim Johnson
Mortgage Introducer: You have come to sustainable business model. As an PPI insurance products priced and properly
Paymentshield from another Towergate organisation we have had to look outside underwritten in the future.
company, CCV – what persuaded you to the natural business boundaries in search of
make the move? new revenue streams. Brokers also need to MI: Won’t this make products more expensive
diversify into other areas. and put people off buying them?
Tim Johnson: This was the only part of the
wider Towergate group that I have not MI: So are you abandoning the traditional TJ: It’s a fine line. The trick is getting the
been involved with so it made sense to small mortgage broker? balance right between point of sale prices
come on board. Paymentshield is also the and those following a cooling off period.
dominant player in its market and I TJ: Not at all. We have reconfigured our field But it has to be remembered that a huge
wanted to see what I could do to reinforce sales force in order to offer a more bespoke swathe of the population have zero
this position and develop it even further. service to our key broker base. At the same protection. Paymentshield keeps 6,000
time we have developed and continue to families in their homes every week, but can
MI: So what new initiatives will you be seek partnerships with mortgage networks and should be doing more. There is a lack
introducing to the Paymentshield stable? where many brokers have migrated to in of knowledge about financial products
these challenging times. generally and that needs to change.
TJ: I look upon the current model as
Paymentshield ‘Classic’. Basically that MI: Turning to the ongoing saga with the MI: Finally, how to you see the future of the
comprises the core products of buildings & Competition Commission, how do you see mortgage broker panning out?
contents insurance, mortgage payment this panning out and in what way will it
protection insurance and landlords’ affect the Paymentshield proposition? TJ: There is definitely a place for good brokers
insurances. Building on this are the that are prepared to put in the work and
specialised products that are accessed TJ: What has emerged so far could be beneficial develop rewarding relationships with their
through Towergate Home & Protect – cover for us. The banks look set to lose their clients. They must also recognise the need
for thatched properties for example. monopoly on selling PPI products at point to diversify – the days of only selling a
However, I am keen to expand further into of sale. That presents brokers, and by mortgage and arranging a remortgage have
the commercial risk space, which is a big extension Paymentshield, with an gone. Brokers must look to sell ancillary
target area for us. opportunity to move on a market that has products – specifically general insurance
traditionally been denied us. And why products – as well as cultivating
MI: Will you be bringing any new products to should the broker then not look to sell all relationships with estate agents, solicitors
market? insurance to do with the home and the and landlords through which they can
householder? That means looking at cross-sell products. Only by developing a
TJ: Not only are we developing new products individual liabilities and not just those sustainable business model will they feel
we will be opening up to brokers associated with the physical property. I am comfortable and have an asset that others
completely new sectors. It’s all about thinking of products like term life and will look to buy should they decide to leave
creating additional revenue for the warranty. Another consequence of the the industry. We want to help brokers build
intermediary that will see them build a CoCo investigation is that we should see that kind of business.
November 2009 Mortgage Introducer www.mortgageintroducer.com
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