Negative coverage of PPI not slowing down MPPI sales
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Almost two thirds of brokers say the regulatory investigations into Payment Protection Insurance by the FSA and Competition Commission have not had a negative impact on selling Mortgage Payment Protection Insurance,says The Mortgage Alliance’s.
in its inaugural general insurance survey, in conjunction with Cardif Pinnacle, it found that almost two thirds of respondents, 64%, felt recent media focus and regulatory investigations have not had a negative impact on the selling of MPPI.
While 21% reported feeling these implications have partly had some effect on sales and 15% said that they have not had any impact on the selling of the product.
The survey also highlighted the importance for brokers and their clients to have the option to advise on household, buildings insurance and mortgage payment protection insurance.
The results of the online survey showed that almost half of respondents, 49%, claimed the option of being in a position to offer household insurance, buildings and contents insurance and MPPI was ‘extremely important’.
While 26% highlighted that this option was ‘very important’ and 16% classed these offerings as being ‘important’. Some 5% of respondents said being able to offer these options was ‘fairly important’ and only 4% said they were not important.
In other elements of the survey a massive 97% considered it important to have a facility which allows customers to spread household repayments over 12 months with a mere 3% reporting that they didn’t feel it was important.
Brokers were also questioned in the survey as to how they preferred their commission to be paid. To this the majority of respondents, 44%, claimed they were unconcerned whether they were paid monthly or annually in advance. However, 33% said they preferred to be paid annually in advance with 23% stating they preferred to be paid their commission on a monthly drip.
The GI survey was launched by TMA in order to gather feedback and views on the current market in terms of both household and MPPI. The results gathered from this online survey will be used to highlight any potential fears, opening or developments in the market which TMA will look to address in the future.
Phil Whitehouse, head of TMA, says: “This survey conjured up some very interesting points and certainly helped us garner a better understanding of what brokers are looking for to get the most out of this important sector of the market.
"A good mortgage club should offer brokers added value in order to help them increase sales/income and, at TMA, we will certainly be looking at elements from this survey to bring a strong proposition to the market that will be of true benefit to our members.”
John Harrop, national sales manager at Cardif Pinnacle, adds: “At Cardif Pinnacle, we are constantly reviewing and updating our products, and the survey has proved invaluable in obtaining feedback from the people who actually sell the products at point of sale. The information gained from the survey will provide a framework for future product development.”
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