MGM Assurance has finalised full details of its plan to take on principal status for appointed representatives (AR) after Mortgage Day.
Stephen Maskens, manager at MGM Home Finance, MGM Assurance’s mortgage arm, said: “We are one of the first companies to actually give full details to ARs, including the price. We are also guaranteeing the price we give brokers until 31 March 2005. I believe we are the only company in the market prepared to give a price and guarantee it.”
The company is currently speaking to its 110 agent firms. Once they have all been contacted, MGM will be releasing price details to, and recruiting from, the market as a whole. However, Maskens said the majority of its current agents would pay nothing.
“Our business model is to sell our insurance, so for any AR, the proposition can be free.” The volumes that will have to be sold to avoid paying membership costs are to be released once all the agent firms have been informed.
Brokers will be given access to the whole of the market through a choice of either Optoma or Mortgage Intelligence’s mortgage desks. “We also allow anyone who thinks it is in the best interests of their client to go off panel with any lender. We will still do their compliance, they just have to tell us,” said Maskens.
Commenting on the proposal, Chris Fleetwood, managing director of broker Paradigm Consulting, said: “Brokers should take care to examine any restrictions and how competitive the insurance products are in the market, but this looks like an interesting proposition. I have seen similar from other insurers.”