Rewind Wednesday – Mortgage Administrator Ivent: Part II
The next two presentations focus on product criteria evolution during the pandemic, and how the protection space has developed. They are:
Understanding the evolving product criteria mix
Jason Hegarty, founder of Criteria Hub
In this session, Jason Hegarty outlines the vast scale of changes to lender criteria since the Covid-19 pandemic began and how to keep up to date with those changes.
He also discusses how these changes impact on client conversations and the advice process for adviser colleagues?
Sector focus: protection and GI
Andy Walton, protection proposition director, Mortgage Advice Bureau
Here, Andy Walton asks why is it particularly important now that every customer receives protection advice and why are some customers choosing not to take it?
He also delves into the role of administrators in making sure that customers have adequate cover and the importance of client communication and reminders and liaison with adviser colleagues.
The Mortgage Administrator Ivent 2020 is now accessible on demand for free to all mortgage administrators via the following registration link: https://www.mortgagesolutions.co.uk/events/mortgage-administrator-ivent
Protection underwriting tightening but ‘CI and IP booming’ – iVENT 2020
Speaking at the Mortgage Administrator Ivent, MAB protection proposition director Andy Walton explained that some cases were taking longer due to insurers and GPs being slower.
However, the firm has seen an 80 per cent increase in income protection (IP) sales with the critical illness market buoyant too.
Walton also emphasised the key role administrators played in getting cases through, this included a major campaign from the firm to revisit customers who missed getting policies put in trust.
Pressure on administrators
Walton noted there was quite a lot of pressure on administrators and sales support, mainly due to mortgages becoming “increasingly complicated and more difficult to get through and that’s taking up quite a bit of extra time.”
“In protection that’s also taking longer to administer and get on the books,” he said.
“It’s mainly because of GPs [where] some of them have slowed down dramatically, although there are occasions where they’ve speeded up.
“But there’s quite a bit of pressure on the world of administration at the minute.”
Regarding insurers and underwriting specifically, Walton acknowledged insurers have started asking more questions in relation to Covid-19 given its emergence.
“New questions have been added which has added a great deal of complexity as different providers are asking different questions, so certain cases are being delayed or postponed,” he continued.
“IP is trickier to get on the books because that’s the highest risk… so there has been some tightening there.
“What we’re hoping is that as this eventually gets under control that the underwriting will get easier.
“It hasn’t stopped business, we’re still writing thousands of policies a month, the vast majority still go on risk and from that point of view it is still business as usual, it’s just those small number of cases which can trip up on these extra Covid-19 questions.”
Walton also said the increased protection business conducted by MAB was a sign of improvements within the market for customers.
“Our protection business has moved up dramatically. On IP we’re writing 80 per cent more than we did a few years ago and it accounts for nearly 30 per cent of our business, so there’s definite moves to look at products outside typical life insurance,” he said.
“CI is booming, IP is definitely booming. Is there more we can do? Absolutely, there’s still too many mortgages which aren’t protected, but we’re going in the right direction.”
MAB analyses the importance of protecting borrowers at The Mortgage Administrator Ivent
Andy Walton, protection proposition director at MAB, (pictured) will host a video presentation at the online event focusing on the protection and general insurance sectors.
He will discuss why is it important, particularly now, that every customer receives protection advice and why some customers are choosing not to take it.
Walton will also examine the role of administrators and support teams in making sure that the customer has adequate cover.
This will include the critical components of customer communication, reminders and liaison with your adviser colleagues to ensure that this opportunity and customer duty of care is not missed.
Register for free
The online Ivent takes place on 23 September and is specifically tailored towards mortgage administrators and paraplanners and this year includes a special focus on the buy-to-let sector.
Attendees will be able to access content, visit sponsor stands, meet and chat with fellow delegates and exhibitors, and send live message questions to speakers.
The buy-to-let sector focus will help attendees to understand the challenges and opportunities landlord clients are facing and how this impacts their strategies for buy-to-let business.
To register for free and find out more information visit the event website: https://www.mortgagesolutions.co.uk/events/mortgage-administrator-ivent/?pfat=08b4ae5e696e4b3784a43e2200380937
TMPE2018: ‘Here’s the magic bullet’ for tackling protection dual pricing – Walton
In a panel session at The Mortgage and Protection Event (TMPE), insurer Legal & General admitted that it was not going to end dual pricing and that brokers should “just try to keep a lid on it”.
The audience in Manchester asked how brokers could deal with customers choosing cheaper products offered direct by insurers.
“Here’s the magic bullet. Price is only an issue in the absence of value, it’s as simple as that,” MAB protection proposition director Andy Walton (pictured top) said.
He noted that MAB was losing “practically nothing” to online comparison sites and retaining 98% of its protection clients despite being loaded at 15% across the board.
And Walton argued that brokers simply producing a £40 per month life and critical illness quote should not be surprised at losing customers.
“How the heck are we doing that? It’s down to value, it’s as simple as that. The whole idea is to add value and the way we add value is bespoke design,” he continued.
“When I look at the design of protection portfolios that MAB have been writing, they are pretty much non-existent.”
Walton explained that the complexity of cases being submitted meant the Solution Builder platform will be extending to include up to 10 different benefits on one quote.
“So as soon as they see that you’ve put together something like that, it isn’t a question any more of replicating that instantly, they can’t,” he said.
“So we’re doing something right in that area, it proves [the pricing issue] can be overcome.”
(Panel l to r: MAB protection proposition director Andy Walton; Legal & General Insurance market development manager Steve Fallon; NatWest Intermediary Solutions senior corporate account manager David Hunter; Lloyds Banking Group national account manager intermediary Jonathan Buckle.)
Try to keep a lid on it
Addressing the audience before Walton, Legal & General Insurance market development manager Steve Fallon (pictured left) said customers choosing to go direct was a problem they came across a lot.
“We can’t move away from dual pricing unfortunately,” he said.
“We think it’s about how its positioned-up front. I think we don’t make the process sexy enough. We need to make it more interesting and appealing.”
He urged brokers to ensure they got clients to prepare evidence of work benefits and sick pay upfront and to focus more on the pre-appointment process.
“When people are going direct I understand the piece about advised vs non-advised but that’s just a cliché isn’t it – you must be told that all the time,” Fallon continued.
“I don’t think there’s a magic bullet unfortunately, just try and keep a lid on it basically,” he added.
TMPE2018: Brokers must explain the risks of protection insurance – Walton
Mortgage Advice Bureau protection proposition director Andy Walton told the audience in Manchester that clients deserved to be informed about the likelihood of events happening.
He said this was one of seven clear steps which need to be completed as part of the mortgage process to ensure customers received advice about protecting themselves and their mortgage.
Walton added that it was vital they knew what the risk was of dying or being off work for two months during the course of their mortgage.
“We tend to miss the attitude to risk bit out of protection – we tend to go straight into the consequences,” he said.
“This is really important. If you are not talking about the risks in these sorts of technical terms with customers, you are missing a massive trick.
“It’s like going to the horse racing but I’m not going to tell you the odds. I’ll tell you to back one, I’m not going to tell you the odds, just to back that one.”
He added: “Insurance is a gamble. And if the customers have a handle on the gamble [they understand].
“Tell customers the truth – put it into perspective.”
Don’t talk about product
Walton also warned brokers not to talk about products but instead about how they could help borrowers to keep up their payments throughout the mortgage term.
“Be concerned about whether your customer can keep up payments over the next 20 or more years of their mortgage, talk about that and only that,” he said.
“What we tend to do is say we do life insurance, critical illness, income protection – we do products, look at my lorry load of products.
“Don’t talk about product, talk about what we’re doing for them,” he added.
The Mortgage and Protection Event 2018 kicks off next week in Manchester
The final two destinations will be Southampton’s St Mary’s Stadium on 14 November, and London’s Allianz Park on 15th November.
Andy Walton, protection proposition director at the Mortgage Advice Bureau and one of our keynote speakers, will be discussing protection and the obstacles to overcome to do the best for your client.
Protection: Passionate about the process
How many times do we say ‘the level of protection I’m arranging is lower than it should be because I am just too busy’? How can we change, ensure that our clients are getting the cover they need, and grow our business at the same time?
Take a look here for more information.
Venue and dates:
Manchester, Etihad Stadium – 7th November
Birmingham, Cranmore Park – 8th November
Southampton, St Mary’s Stadium – 14th November
London, Allianz Park – 15th November
Exclusive: MAB recruits Intrinsic’s Emma Hollingworth and Andy Walton
Intrinsic Financial Services’ Hollingworth leaves her sales director, mortgage network role to become mortgage proposition director at MAB and protection sales director Andy Walton leaves to become protection proposition director at MAB.
Both joined Intrinsic Financial Services in August 2012 with start dates at MAB to be confirmed later in the Summer.
MAB CEO Peter Brodnicki said: “With so much change and opportunity ahead of us, it is crucially important for us to have strength in depth, and the strategically important appointments of Emma and Andy deliver exactly that.
Specialisation has been a key factor in MAB’s success to date, and the appointment of such high calibre individuals into these two new roles, combined with the other key appointments and investments last year, ensure MAB has the skills and expertise in depth across the business.”
He added: “This is great news for our AR partners and advisers, as we look to build new and exciting distribution solutions, whilst we align ourselves even closer with our customers and their future needs.”
Hollingworth has been appointed to strategically shape the mortgage proposition, its technology and lending. This will include specialist lead generation for MAB advisers and opportunities in the remortgage and retention space as well as MAB’s joint venture in Australia.
There is no crossover into Brian Murphy, head of lending’s role, who continues to oversee lending relationships, PR and lending to broker firms.
Walton joins after MAB bought a 20% share in protection specialist Vita in June last year to extend options for MAB distribution and further improve consistency of protection and GI advice provided within the group.
Walton’s strong record at Intrinsic includes a massive increase in protection sales volumes and consistency over his tenure and at MAB, he will own the whole proposition from product, technology to marketing, Vita and all development, communication and distribution strategies.
Hollingworth, mortgage proposition director at MAB, said: “I have always admired MAB’s seemingly never ending ambition and passion, and the fact that they have always led not followed.
“It is clear that the intermediary landscape is going to be changing, which is a huge opportunity for those businesses like MAB that are both bold and decisive, and so I am really looking forward to joining such a vibrant business and management team and at such a defining time for the intermediary sector.
“I look forward to playing my part in MAB’s continuing evolution.”
Walton, protection proposition director at MAB said: “The team at MAB are hugely talented and well-respected by their membership and the industry at large. Protection is a massive focus for MAB and we need to ensure all customers receive advice in this critical area.
I am really looking forward to helping drive forward the protection side of the business.”
Andy Thompson, Intrinsic CEO, thanked Hollingworth and Walton on behalf of everyone at Intrinsic and wished them both luck for the future.
“Intrinsic is committed to continuing our market-leading support for advisers and this year introduced a separate business channel for mortgages to give that part of the business representation and accountability at board level.
“We recently announced that Stephen Gazard would be joining the business from Sesame Bankhall Group to oversee the mortgage and protection business and we will be working to appoint experienced successors to both Emma and Andy in the near future.”