Getting back to the basics of insurance

22 March 2010

Selling buildings and contents insurance provided a steady income for brokers in times past.

But in recent years, with a booming housing market, some eschewed this insurance.

They were happy with the money they were making processing mortgage and remortgage applications.

Now, with mortgage cases in the doldrums, the time is ripe to revisit the somewhat staid but steady world of buildings and contents insurance.
As intermediaries neglected this sector direct writers were quick to see the opportunity to make easy money.

For many customers going online is the first port of call when seeking this commoditised product. And why not? Individuals can use simple comparison tables to seek out the cheapest quote in a matter of minutes, then buy it online.

But the danger is that the policy they select may not match their individual requirements, so they could find themselves in a tricky position should the worst happen.

An adviser’s expertise can help clients make the right product decision but unfortunately price is usually the determining factor and here, direct writers have proven hard to beat.

But a variety of systems now allow brokers to offer competitive products, reducing the initial quote and in some cases offering discounts on premiums.

So there’s no excuse not to chase clients at renewal and offer a value-added service by saving them money while making some much-needed commission.

If you enjoyed this article, sign up here to receive daily email updates from Mortgage Strategy and Follow @mortgagestrat