Mortgage Intermediaries offered a Free on-line solution for MPPI and Income Protection Sales to avoi
Added: (Fri Nov 06 2009)
Pressbox (Press Release) -
Internet insurance specialist iprotectinsurance.co.uk provides a simple bolt-on solution for intermediaries to add Mortgage Payment Protection Insurance (MPPI) and short term Income Protection Insurance to their websites. Several Mortgage Brokers have already signed up and many more are set to join them because of the continuing uncertainty surrounding FSA regulation in this sector.
It is an option for those firms that want to sell without the compliance concerns as tightening regulation has created a quagmire for brokers reliant upon their traditional sales model. Massive fines for mis-selling and plunging profitability have led both intermediaries and underwriters to think seriously whether they want to be in this market. Meanwhile, the recession has driven demand for products that are now more difficult to sell due to their regulation.
The traditional point of sale model, with the sale of an MPPI policy bundled with a mortgage sale, 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. The FSA proposed imposition of a compulsory 7 day ban on any MPPI sale linked to a loan was thrown out by the High Court. Despite Barclays victory in this case, it is little consolation as the FSA have yet to show their hand in respect of any revision to their proposed regulations.
With such uncertainty in the market, intermediaries will not invest in systems and some would rather stop selling MPPI altogether. Such a dramatic response is un-necessary for those willing to take forward the iprotect affiliate solution. 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 aid the sales process. The intermediary simply enables an iprotect link on their website and thereafter earns a finders fee for every policy sold. For Mortgage Brokers iprotect provides an easy way to add a risk free quote-and-buy facility to their website free of charge.
The forthcoming FSA driven annual statements are expected to trigger a great deal of shopping around for MPPI and Payment Protection Insurance. Any intermediary unable to offer a competitive on-line product is likely to be simply bypassed. Dennis Haggerty the Marketing Manager for iprotectinsurance.co.uk commented Our affiliate package is an easy way for the intermediary to opt into on-line sales to see if the internet works for them. If the business volumes are there, we can also offer bespoke solutions.. Brokers can leave compliance hassle behind as well as keep their clients happy with iprotect rates that compete with the best on Money Supermarket.
The iprotect offering for intermediaries
It assumes the intermediary has a website that is used by their customers and attracts web traffic
A link is provided by iprotect to place on the intermediary website. This is either for specific products such as MPPI or linked to their complete protection range (includes Lifestyle/Income Protection, Tenant Rent Protection, Gadget and Mobile Phone Insurance)
Any web content promoting these products on the intermediary website is either supplied by or signed off by iprotect, as they take responsibility for compliance of the on-line sales process
All fulfilment, premium collection, documentation, administration and claims are dealt with by iprotect directly with the customer
Monthly sales figures are sent by email high volume iprotect partners can have 24/7 on-line access
No product exclusivity requirements
No minimum volumes / threshold before the finders fee is paid
Note iprotect will only do business with FSA register intermediaries
A finders fee is paid for every sale this varies depending upon the business type, volume and chosen business model. For example, a typical Mortgage Broker on the standard affiliate scheme would expect to receive £40 per MPPI sale
This finders fee is paid within 28 days of the first direct debit being received
Summary iprotectinsurance.co.uk offers a solution for intermediaries looking to generate income from MPPI and short term Income Protection by offering their clients an on-line alternative. Whilst iprotect does eliminate compliance concerns for the intermediary, their on-line product is not a substitute for an advised sale. There should be room for both.
Much depends upon whether the FSA see sense in terms of the regulation, or if they remain determined to separate the provision of a mortgage loan from the sale of an MPPI policy. If they achieve this despite the Barclays ruling, any intermediary without a price competitive product will see their clients lost to the low cost internet providers. The iprotect solution is good for the intermediary to counter this, especially because it can be deployed without any cost.
For further information please visit http://www.iprotectinsurance.co.uk/affiliate-scheme/