How one broker firm boosted its income by focusing on insurance – Mortgage Solutions
10/07/2019
My last column explained that advisers do not need to compete on price when advising clients about their insurance options. Instead, the provision of quality service and support is more than enough to make it worth their time while also providing their client an important service.
This contribution is highlighting how one mortgage advice firm has benefitted from embracing this approach.
I have coined the term The Enlightened Broker and if we have ever met you’ll know it’s a concept I champion strongly.
To put it simply, the enlightened are those that look beyond the perceived burdens of price, regulation and competition, and believe that differentiation and customer experience offer the best route to sustainable growth.
I say concept, but in fact the enlightened broker is a proven strategy.
YMD’s review service
To give you an example, Your Mortgage Decisions (YMD) partnered with Cavere to trial the concept.
We trained up a specialist insurance adviser for them, who they then introduced to all of their clients by way of a free protection review service.
The specialist adviser conducts a full review of each client’s current cover to ensure it is appropriate for their needs.
This leads to three possible outcomes:
Either the adviser discovers that their current arrangements are inadequate and can save them money for the same cover, indeed our data shows money savings can be achieved on half of reviews;
They could achieve better quality cover for the same price;
Or alternatively they discover that the client already has the right cover in place.
Bottom line boost
The benefits of this approach prove itself very quickly.
In instances where better cover can be obtained, this provides YMD with a valuable income stream – an uplift in insurance sales which more than pays for the cost of providing the service, and trail commission for future years.
But more than boosting its bottom line, the service has delivered YMD with a differentiated service proposition.
They are engaging with their clients regularly and going above and beyond to deliver on service and value.
Providing the review service has boosted retention and built brand loyalty – a lasting legacy.
Now is not the time for mortgage brokers to shy away from insurance sales, now is the time to invest in doing it right.