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Better Business

How to tackle the protection conversation with remortgage clients – Green

Written By:
Guest Author
Posted:
September 13, 2024
Updated:
September 13, 2024

Guest Author:
Emma Green, director of distribution at Paymentshield

For the past five years, we’ve conducted an annual Adviser Survey to understand how mortgage advisers approach general insurance (GI), its importance to their business, and what aspects they find challenging.

The results of our latest survey show that GI has consistently become more important for advisers, with fewer missing out on opportunities year-on-year. 

One thing has remained consistent, however. Each year, advisers report regularly missing out on GI opportunities with remortgage clients. One in five advisers say they “rarely” or “never” discuss GI with this group.

This statistic has not budged since we began the survey. So, what is it that makes this group of clients challenging to engage, and how can advisers overcome it? 

 

Revisiting and reassessing policies 

One of the most common perceived blockers is that the client already has an existing policy in place. But this may no longer meet their needs – especially if they’ve been on a lengthier mortgage term – and it could be leaving them financially exposed. Advisers can therefore add a lot of value by offering to do a review.

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The first thing to do is ask remortgage customers for a copy of their existing policy to enable like-for-like comparison. Ask probing questions: Have they purchased any big-ticket items recently? Do they ever work from home? Has their home undergone any renovation or extensions recently? Do they have a child at university?

Advisers will quickly establish whether the current level of cover is still meeting the client’s needs. Even if it is, check whether the policy is still competitive. Offering to do a review could actually result in saving them money while providing the same level of cover – something they would undoubtedly appreciate and that would help strengthen the relationship.

 

Leaning on technology 

Using technology tools to support the conversation can also be really valuable. Tools like Defaqto Compare, which provides like-for-like product comparisons and makes the process more transparent for customers, can help to build trust.

It’s a great approach to take with remortgage customers because they’ll be able to visually see where their existing policy may be falling short in certain areas. 

Technology tools can also be really useful in identifying which customers might benefit from a home insurance review. We have a flagging system in place, for example, that flags policies that are long-standing – serving as a visual prompt to encourage advisers to have that conversation. 

We also know from speaking to advisers that renewal dates and remortgage dates not aligning can be another blocker to broaching GI. But again, it doesn’t need to be. Look for providers that offer long quote validity, and it can overcome this hurdle. 

Finally, we understand that, sometimes, advisers simply don’t have the time or appetite to speak to their remortgage (or any) clients about GI. In these instances, referring clients to a trusted partner means they can still access quality insurance, with the option of expert advice, and advisers can still earn commission. 

Our Adviser Survey also revealed, however, that current overall awareness of the benefits of referral is relatively low – despite existing referral statistics demonstrating high conversion and positive customer experience.

So, for those advisers where remortgage clients might remain challenging for GI, I’d strongly encourage them to explore referral options available to them.