However, 61% of respondents disagreed, insisting they were not worried about compliance.
Ben Larkin, director at Simply Finance said that nothing has changed for brokers who are confident about providing suitable advice.
“We have a dedicated team of general insurance (GI) sellers who are aware of what’s going on in that market. Therefore we are not concerned about compliance and have prepared in advance to ensure we advise and sell ASU cover to those who need it.”
Larkin added that the appetite for ASU cover is there but that there is a misconception that consumers aren’t interested because of the PPI mis-selling scandal.
“More advisers need to be speaking to clients about ASU cover and not avoid the topic. There are times where advisers will pick up ASU business but then just as easily drop it, focusing on pure protection instead.”
According to Geoff Hall, director and general manager of Berkeley Alexander, the recent Competition Commission rules change on the sale of ASU products – which has stopped advisers from being able to sell such products at the point of sale of a mortgage – has arguably further compounded the problem of brokers offering the products to clients.
Hall said: “The burden of increased regulation has created a fear of advising on ASU products, when in reality these rules are necessary to prevent the previous mis-sales from happening again. They also set out the steps brokers must take to ensure they can no longer be accused, however falsely, of treating customers unfairly.”
Hall said that some steps that brokers can take to ensure they are mis-sales proof include finding out how much monthly benefit their clients would require, how long they could survive on savings and at what point they would need the policy to start paying out.
Martin Sincup, protection product manager at LV= insists that mortgage advisers could look at alternative products not covered by the ban to help improve their protection business.
“The criteria outlined by the Competition Commission means that the sale of long-term products such as income protection are not affected by the new rules.
“With many advisers looking at products to sell as an alternative to PPI at the point of sale, this shake-up could provide advisers with a welcome opportunity to broach the subject of longer-term protection products with their clients and expand their protection product range.”
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