James, our Sales & Marketing Director, reacts to our recent research that highlighted the amount of potential commission being ignored by advisers who aren’t talking about GI.
According to our latest research, mortgage advisers are missing out on millions of pounds worth of potential commission!
The data, based on figures from the Council of Mortgage Lenders (CML), revealed that mortgage advisers, as a profession, missed out on over £18 million in commission earnings from sales of general insurance last year1, simply by failing to provide a Home Insurance quote with every mortgage or remortgage.
According to average quote and conversion rates and even after taking annual attrition into consideration, losses in potential earnings over the next five years could reach a staggering £75 million!
Our research follows the launch of our 3 Months Free Home Insurance offer for clients remortgaging their property or transferring to a new mortgage with their existing lender.
According to CML, remortgages contributed to about 35% of all mortgages last year, which means around £6 million in unclaimed GI commission for these applications alone!
From speaking with advisers, it’s clear that you’re all working harder than ever before and, with the average mortgage application taking up to 12 hours to complete, it’s understandable that quoting for GI can sometimes fall by the wayside. However, on average, it takes just 30 minutes to complete a home insurance application.
GI is a ripe opportunity for you to bolster your income with very little additional time and efforts while fulfilling your duty of care by ensuring your clients’ assets are adequately protected.
With the potential of an interest rate hike on the horizon, it’s likely that the remortgage market will continue to outperform other areas as consumers shop around for low rate deals.
When helping a client with a remortgage, general insurance may not be top of the discussion list as your client will normally already have their home insurance in place. Does that mean you shouldn’t ask?
Without a conversation about their current arrangement, can you be confident the policy they have in place is fit for purpose?
Could you be leaving your clients financially exposed as well as bypassing commission opportunities?
Book a callback with your dedicated Telephone Business Development Manager today to make the most of the GI opportunity and to stop potential commission walking out the door.
1Data on file at Paymentshield