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Protection
highlights just how important it is for insurance sector is enjoying some of the most Of course this means making sure that a
intermediaries to become proactive in actually cost effective deals for years. Of course financial broker has access to a wide ranging panel of
selling protection offerings to their clients both pressure on households will continue to restrict insurers with market leading products and
new and old. Indeed recent FSA research for the spending in certain areas but this is where the commission rates. Although a strong level of
RDR highlighted that the reason many intermediary comes in to ensure that they can expertise will undoubtedly put an adviser in
consumers purchased a product was because provide the best cover for the best price. the best position technology in the form of a
they were asked to, the obvious question then Selling life and general insurance cover simple to use system on which they are able to
remains, are advisers doing enough? The sad provides a great opportunity to revisit clients and quote and apply could also help speed up and
truth is probably not. address their changing needs. The lack of simplify the whole sales process. Embracing
Many people appear to rely on savings as a consumer take up in such important areas technology to help deal with life insurance
back up in the event of falling critically ill creates the perfect reason to contact clients. With products enables the intermediary to
therefore not being able to work but the cold confusion evidently being at the forefront of concentrate on the sales process therefore
hard facts are that the financial impact of such their mind regarding these types of cover the creating more selling time for brokers and also
an event can run into thousands of pounds. And client is more likely to agree to an appointment. helps to create some shelter from any possible
in all reality just how many people can say they This can often be justified by saving them money non-disclosure issues.
have this amount of money stashed away for just on re-broking older term products which will
such an unfortunate event? not only strengthen the relationship but also help Good relations
create a good compliance regime and lay the Brushing up on good old fashioned sales
Awareness foundations to revisit other mortgage-related techniques will also help intermediaries to
It’s important for the industry to come forward areas. prosper in terms of both looking after their
and empower people with the necessary Exploring this sector will ensure clients’ financial well-being and their own regular
information/advice to accelerate the shift from intermediaries increase their expertise whilst income levels. In addition forming good relations
better awareness towards making informed remaining proactive as any good insurance fact with providers can help ensure business and
decisions to improve their financial protection. find will ask comprehensive questions of the valuable trail commission is not lost.
Cover such as income protection (IP) and client. This fact find may well conjure up a Intermediaries can ask providers to let them
accident, sickness and unemployment (ASU) number of leads in other areas therefore leading know if their client has missed a payment or
cover can often be mistaken as being one and the to a snowball effect and the opening up of small intends to cancel a policy. This information will
same by many consumers but intermediaries but valuable commissions both now and for the allow them to contact the client directly to try
should be aware of the subtle differences and future. and save any possible lost causes.
advise as appropriate. In all areas of the mortgage, protection, life
If insufficient explanations/advice is offered Advice  and general insurance sectors there has never
then there is a danger that clients’ expectations of There is a justifiable argument that the time has been a better opportunity for intermediaries to
a payout under ASU will not be met because they come for intermediaries to be even bolder in engage with their clients. With an increasing
thought they had IP. Intermediaries need to ask their protection advice and in the right number of people underinsured this provides
themselves the searching question as to whether circumstance more forceful in advising clients the perfect opening to enter into dialogue
they are really underlining the differences in that they really must have some form of life regarding their insurance requirements.
these particular products to their clients and that cover at the very least. The importance of the Ignorance also breeds opportunity.
they are making them fully aware of the advice process should not be underestimated, Intermediaries need to arm themselves with the
likelihood of long-term sickness potentially products that may be available over the internet skill and knowledge to sell in a proper and
crippling their finances. or in supermarkets do not come with the appropriate manner to the increasing numbers
necessary specialist advice but obviously this is of consumers illustrating some form of long
Price something that can be pushed through contact term financial ignorance. And for those ready to
As with the majority of market forces price will with clients to ensure they are getting the correct put in the hard work the potential rewards
continue to be the main driver and at present the product at the correct price. remain healthy.
February 2010 Mortgage Introducer www.mortgageintroducer.com
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