Mortgage Introducer April 2021

Page 32

REVIEW

GENERAL INSURANCE

Too busy to earn lifetime policy income Claire Fletcher PR, Safe&Secure

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o you want to commit to earning a lifetime of building and contents renewal income, so each month you receive a commission and that just keeps building? Many people do not want this income. They feel it is a step too far after organising the mortgage and the life, but really it should be approached as a free service not a sale and then clients can benefit from the help, advice and support of a specialist insurance iroker. The amount of monthly building and contents commission lost on average for one single case is just £3. Big deal I hear you say! But for the year you have lost £36. Still not a big deal? What if that client stayed with you for three years that’s £108 or even five years that’s £180 building and contents income lost from just one policy. Now most brokers write an average of two mortgages a week which equals 104 a year. But you’re not going to get every one so let’s say 90 for the year. With an average annual building and contents referral commission of £36 you would now be losing out on just over £3,000 building and contents policy income for the first year. Do I have your attention now? With fixed term mortgages your clients will probably stay with you for that period, so if those 90 clients keep the home insurance for three years you will now have lost out on £9,000 of building and contents policy income, and if it was for the five years then you potentially could have lost out on £15,000. Now that’s the ongoing income that

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MORTGAGE INTRODUCER   APRIL 2021

kept many brokers afloat during the pandemic shut down last year when the housing market came to a full stop for three months. In the current climate many home owners are reviewing their bills and outgoings and tightening their belts and are much more likely to cut some costs. It is therefore the brokers role to educate their clients and provide them with the knowledge and tools to make good decisions. Without having a conversation about it they may not be aware of

large excesses and the low ratings of some cheap online policies. If the conversation is had early enough it is an easy additional sale and by using a reliable company there is no additional compliance By not looking after your clients home insurance needs you are losing income. In addition, the clients who are left to search for policies themselves will be offered life cover – they may not review it straight away having just set one up but in their 14 days cooling off period could easily be swayed to a cheaper online policy. In the future they may even do their mortgage online so that you lost all income from the customer. By offering a complete financial protection service you are not only protecting your clients but also your lifetime income. M I

The figures stack up: buildings and contents policies can earn significant ongoing income

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