Free direct to public non-line sales system for Intermediaries to banish FSA worries
Added: (Mon Nov 09 2009)
Pressbox (Press Release) -
Internet insurance specialist iprotectinsurance.co.uk provides a free solution for intermediaries to add Mortgage Payment Protection Insurance (MPPI) and short term Income Protection Insurance (IP) to their websites. Mortgage Brokers are also signing up to this because of the continuing uncertainty surrounding FSA regulation of these products. They can then leave on-line sales compliance to iprotect and concentrate on more profitable business.
This is an option for firms that want to sell MPPI and IP without the compliance concerns of their traditional sales model. Massive fines for mis-selling and plunging profitability have led both intermediaries and underwriters alike to think seriously whether they want to be in this market. The distributors of MPPI and IP now feel their point of sale model is under attack. The regulator having banned single premium contracts, then promptly made monthly contracts a liability to sell by blocking 2009 rate increases and product changes. Barclays High Court victory overturned the FSA’s 7 day rule, however, it is little consolation as the industry must still await the regulators response.
With such uncertainty in the market, intermediaries are unwilling to invest in systems especially as there remains the fear compliance costs will soon wipe out any profit. As an alternative to simply giving up selling these products, iprotect offer intermediaries their affiliate solution to tap into the recession driven demand for this insurance. With iprotect the sales process moves on-line and is strictly non-advised. However the customer is supplied with a wealth of information, buyers guide, links to helpful websites etc to help them complete the sales process.
The gross sales of MPPI and IP products have fallen to an historic low, however in contrast, on-line sales are at record levels. To secure their share of this on-line boom, the intermediary simply enables an iprotect link on their website free of charge. They will then earn a finders fee for every policy sold.
The forthcoming FSA driven annual statements are expected to trigger a great deal of shopping around for MPPI and Payment Protection Insurance generally. Any intermediary unable to offer a competitive on-line product will simply risk being bypassed. Dennis Haggerty the Marketing Manager for iprotectinsurance.co.uk commented “Our free affiliate package is an easy way for the Intermediary to opt into on-line sales to see if the internet works for them. Brokers can leave the compliance hassle behind and keep their clients happy with iprotect rates that compete with the best on Money Supermarket.”
For further information please visit http://www.iprotectinsurance.co.uk/affiliate-scheme/