Previous
INTERMEDIARIES HEED DIVERSIFICATION MESSAGE
Added: (Mon Sep 19 2005)
Charterhouse Research
News Release
INTERMEDIARIES HEED DIVERSIFICATION MESSAGE
- Vast majority of mortgage intermediaries are authorised to advise on general insurance and research reveals widespread optimism for business levels
- Research reveals that a third of those who have adopted AR status are considering becoming directly authorised
London, 19th September 2005: Charterhouse Research, the specialist financial market research consultancy, today reveals that the outlook for mortgage-related general insurance sales looks positive
‘Mortgage Intermediaries – The Regulated Environment’ has been tracking the intermediary market in the face of regulatory changes via 100 interviews per month with intermediaries. House insurance and protection are natural partners to a mortgage and clearly a valuable means for intermediaries to increase revenue streams. It appears that intermediaries have taken this message on board, with the vast majority (91 per cent) authorised to advise on general insurance.
Intermediaries are evenly split between directly authorised and those with appointed representative status. According to the research, many appointed representatives are not comfortable with their first choice of authorisation status - nearly a third (32 per cent) of appointed representatives looking to change, giving them more freedom to offer customers a wider range of products. In contrast, just five per cent of the directly authorised intermediaries are considering a status switch
There is widespread optimism amongst intermediaries that the volume of general insurance business will increase; 49 per cent of respondents expect their business levels to rise while only five per cent of intermediaries anticipate a decrease in general insurance business.
Intermediaries are most optimistic about the outlook for life insurance sales - 57 per cent of those questioned expect volumes to increase and only one per cent predicated a decrease. Respondents were also optimistic about MPPI (Mortgage Payment Protection Insurance), with just under half (47 per cent) anticipating growth. The picture for critical illness is more mixed with 42 per cent predicting an increase in business volume but 17 per cent anticipating a drop.
Price and rates received the highest level of spontaneous mentions as reasons for selecting insurance providers. Other key considerations are quality and speed of service, particularly the simplicity of submitting applications; and product quality and range .
Julie Irwin, the Director at Charterhouse Research responsible for the Study, said: “Talking to customers about the range of protection available to them is a natural extension to providing mortgage advice. Although rates and price remain a dominant driver of provider choice, the importance of good and efficient service shouldn’t be underestimated, particularly in an environment where the mortgage sales process has been considerably lengthened.”
About Charterhouse Research:
Charterhouse Research Ltd is a specialist market research consultancy for the financial sector. The four directors of Charterhouse have over 60 years of financial research experience between them and have conducted studies for all the major UK banks, the leading insurers, asset managers and other financial institutions. The directors of Charterhouse have been conducting research in the mortgage intermediary market for over 15 years.
For Further Information, please contact:
Emma Flack at EFPR
Email: emma@emmaflackpr.com
07753 857101 / 020 8874 1147