Stabilise income by selling GI products

12 July 2010

This marks the beginning of a series of articles seeking to provide ideas on diversifying income streams.

In an environment where mortgage income is unpredictable and hard to come by, the stability general insurance income can bring should not be forgotten.

But many advisers have yet to embrace GI. If that includes you, here’s why I believe you should.

First and most significant is the embedded value GI provides. Sell two buildings and contents policies a week at an average premium of £25 per month, achieve a market average retention rate and after four years you’ll see annualised income of about £30,000.

Do the same with mortgage payment protection insurance and you could double that figure.

Second, consider the role of GI in creating and retaining client relationships. Failure to complete a GI sale could result in your client turning to Moneysupermarket.com or Tesco, and you know they will be after your client’s life cover and mortgage too. Not selling GI could lose you the whole relationship.

If you’re still not convinced, don’t forget your role in looking after your clients. If their home becomes one of the 49,000 a year that falls victim to fire and you have not discussed GI how will you feel?

Assuming you are now convinced, how do you go about building your GI business? Well, GI is no longer an easy cross-sell. My next articles will provide ideas on how to turn on the GI income tap.

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