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Mortgage advisers lose £48m through missed home insurance sales

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  • 30/06/2020
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Mortgage advisers lose £48m through missed home insurance sales
Brokers have untapped earnings worth £47.8m through unrealised home insurance opportunities, analysis has suggested.

 

Simply providing each mortgage client with a home insurance quote could significantly boost income, insurance company Paymentshield found.

Remortgage and product transfers are a huge area of missed opportunity, amounting to £10m alone in lost commission, according to the research.

Paymentshield said the revenue stream could help soften the impact of coronavirus for many advisers.

The insurance firm has launched a 22 per cent pricing reduction for new remortgage, product transfer and equity release clients, in the hope more advisers will have insurance conversations on every mortgage.

Paymentshield is also offering a three-month payment holiday option – which will form part of its permanent proposition.

It is hoped these initiatives will help boost adviser businesses integrating insurance sales into their proposition for the first time.

Since April more than 350 adviser businesses have submitted an insurance quote through Paymentshield for the first time.

Emma Green, head of sales at Paymentshield (pictured), said: “Having a conversation about home insurance is often not perceived as a priority by advisers, but they are missing out on a huge amount of commission.

“Remortgage and product transfer clients in particular are often overlooked when it comes to a general insurance conversation.

“We know from our own research that nearly half of advisers admit to missing opportunities to sell general insurance.

“When it comes to remortgage and product transfer clients this is because of renewal dates not matching, cancellation fees, or simply because clients perceive their existing policy to be meeting their needs.

“As a result of Covid-19 more consumers are starting to review the protection products they have, from wills, life insurance, mortgage protection and home insurance – so the benefits of reviewing policies for remortgage, product transfer and equity release clients are also clear.”

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