However, while I stand by my point that many brokers need to do more, in the intermediary community’s defence I also recognise what a hard sell GI is. Consumers don’t really want insurance. It’s not a product they get to particularly enjoy at any time. Even home insurance, which is a requirement with any mortgage, can be difficult because the consumer will often think they can find something cheaper elsewhere (and this may be the case but cheaper usually mean inferior).
I get that this can be frustrating but if you’re giving up at the first hurdle, then you’re giving up too easily.
Firstly, if your client says they want to source their own insurance, get them to sign a disclaimer advising that they declined your advice. Having to actually put their name to something that effectively says, “I was given advice from an experienced financial professional and I chose to ignore it”, may make them think twice. Often customers can take quite a flippant approach to insurance products but a disclaimer like this should make them understand the serious nature of the product.
Next, outline the dangers of comparison sites, as nine times out of ten that’s where they’re thinking of looking. One which usually concerns most borrowers is the fact that some of these sites will undertake credit searches which could have an impact on their ability to borrow in the future. Does your client know that?
Finally, remember, just because you don’t sell to this client now, doesn’t mean you can’t in the future. You should expect to convert 40-50% of quotes to applications with a quality GI provider. However if you don’t make a sale this time, make a diary note and give them a call in 12 months’ time.