The general insurance provider will offer the commission to all brokers who deliver converted leads before June 7.
The provider said in the post-Mortgage Market Review environment brokers would find it beneficial to spend more time on mortgage sales and pass insurance leads onto another firm.
Distribution director Bruce Reid said brokers were already feeling the time pressures following the introduction of the new regulations.
“Feedback from many brokers that we work with indicates that implementing the new MMR requirements is impacting on the time they need to advise and sell general insurance,” he said.
“Having spent a significant amount of time on the mortgage application process it’s sometimes not possible or feasible for them to cover off home insurance and mortgage payment protection insurance (MPPI) requirements with the customer.
“The result is that many are postponing the sale. Some may even be inadvertently steering clients into the arms of other financial services providers that might have a different perspective of who owns the customer and therefore, offer the same financial services as the broker.”
