MIp27-28_0210:MI 2008 21/01/2010 17:16 Page 1
Protection news
27
James Watson, sales &
marketing director at
Intermediaries missing out on
Paymentshield, looks at the
passion with which we insurance windfall
embrace debt
Mortgage intermediaries could be Abbey for Intermediaries, said: "It is Groupama.
It was with some degree of losing out on a market worth a no secret that insurance offers one In addition, home insurance
despair that I learned that more
potential £30 million in sales com- of the most attractive income add-ons can be added to Bedroom
than one million householders
mission this year if they do not sources for intermediaries, and yet Plus and New Build policies, to give
have used credit cards to pay
their mortgage or rent in the
exploit the profitable general insur- there are still so many who over- customers the additional protection
last year.
ance market, according to Abbey look it as a revenue stream. they might need, including:
This shocking revelation
for Intermediaries. "The housing market is still con- Home Assistance Plus - Provides
came to light in a YouGov poll
The bank believes that regardless tracted and although there are some 24 hour Emergency Assistance for
commissioned by the homeless as to whether we see a housing positive signs that may indicate problems such as with roofs,
charity Shelter and is a stark market recovery this year or not, growth this year, we are a long way plumbing, heating, power, and
reminder that home
intermediaries could still supple- off previous levels. Brokers are miss- security systems. Available for only
repossessions may not yet have
peaked.
ment their business revenues by ing out if they do not take advan- £2.81 with a Bedroom Plus policy
How did we arrive at this
cross selling Insurance products to tage of the opportunities available to and £2.68 with a New Build policy.
position where, according to the
homeowners. them in this lucrative market." Family Plus Legal Protection-
report, even middle and upper
On average only one in five To support brokers, Abbey for Provides cover for disputes includ-
class people have resorted to
homeowners will purchase build- Intermediaries has this week made ing; employment, contract, tax and
using credit cards to keep the ings or contents insurance when some changes to its Additions home property, Identity Theft Protection,
roof over their heads?
they take out a mortgage with an insurance range including reducing with free helplines for Legal, Tax
The passion in which many of
intermediary, leaving a massive 80 premiums for customers by an and Medical Advice. Available for
us embraced debt, comfort-able
in the assumption that house
per cent of borrowers as potential average of 17 per cent by introduc- just £1.35 with a Bedroom Plus
prices would always increase to
insurance customers. ing a panel of three insurers to policy and £1.29 with a New Build
offset the shortfall, was key.
Ricky Okey, managing director of oversee the range, Aviva, Zurich and policy.
Although house prices in some
areas have recovered recently,
many have been plunged into
Aviva introduces own occupation definition
neg- ative equity at a time when
Aviva has announced that it has occupation terms have been suits their own personal needs."
employ-ment prospects are reviewed its medical underwriting offered to dental surgeons for This improvement follows Aviva's
bleak. approach for medical profession- some time, we are seeing an recent announcement that they
But this crisis was sparked by
als and now offers an "own occu- increased interest from interme- were introducing an innovative
one glaring failure. That is the
pation" definition for surgeons diaries to offer other surgeons the discount for customers with an
failure to educate people that
they need to make provision for
who perform surgical procedures option to protect their income exclusion (including partial) for
the bad times. Such a
and operations. Previously "the based on their ability to perform mental health and/or spinal con-
dereliction of duty can be laid
suited definition" was offered. their own role. ditions. Aviva customers taking
with the government, the wider
Kevin Murdoch, senior proposi- "In response to this we now offer out an Income Protection
financial services industry and tion development manager, Aviva, the choice of either the suited Solutions policy also benefit from
with customers who failed to
UK Health said: "Aviva is com- definition, with its associated cost temporary accident cover, offer-
factor in the consequences of an
mitted to ensuring that income savings, or own occupation, ing them up to 90 days' free acci-
unfavourable economic
environment.
protection Solutions remains enabling medical professionals to dent cover whilst the policy is
Homeowners should never
highly competitive and while own choose the level of cover that being underwritten.
have to rely on using their credit
cards to pay the mortgage. BIBA board boosted
Perhaps it is time for the
government to think about
The British Insurance Brokers' chairman of BIBA's London Brendan commented: "I look
making mortgage payment
Association (BIBA) has announced Market Regional Committee forward to getting involved and
protection insurance (MPPI)
the appointments of Brendan (LMRC), will join the board at its representing BIBA members on the
compulsory and educating the
McManus, chief executive of Willis next meeting on 26 January 2010. many challenges that they face dur-
masses as to why this is a good UK & Ireland and Ken Davidson, Eric Galbraith, BIBA chief exec- ing 2010 and beyond."
idea. After all, if you can afford a
chairman of Crispin Speers, to its utive, said: "I look forward to wel- Ken added: "It has been very
mortgage, you should be able to
board. coming Brendan and Ken to the rewarding to chair BIBA's LMRC
afford MPPI. If you can’t then
the mortgage application should
Brendan, who has invaluable board as I know that they will both and I now look forward to repre-
be denied.
experience of broking and the gen- bring invaluable understanding and senting the wider issues affecting all
eral Insurance market, and Ken, experience of the broker market." BIBA members."
www.mortgageintroducer.com February 2010 Mortgage Introducer
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