Protection sales can help brokers recover

25 January 2010

At the end of 2009 there were signs of recovery in the mortgage market, providing hope that 2010 would be a better year for mortgage-related protection sales.

Mortgage lending improved at the end of the year, with more choice in interest rates and higher LTVs. Equifax says first-time buyer confidence is slowly returning.

Despite these positive signs experts urge caution. Mortgage sales may rise but only slightly on the low levels of 2009.

But even a small move from recession to recovery should be welcomed. For the advisers who survived 2009 this year should provide many opportunities to grow their business, putting them in prime position to take advantage of the eventual upturn in the mortgage market.

Last year many brokers sold protection insurance to increase their income while mortgage sales were low. With an upturn in mortgage sales protection in the form of life insurance, critical illness cover and income protection could provide a lucrative income.

The recession has forced consumers to become more financially savvy and receptive to protection, with many facing the financial consequences of nothaving an income.

So for many advisers selling the need for financial protection should be easier than in recent years. As first-time buyers return they are more likely to seek the help of professional advisers.

We may not see a big upturn in the economy this year but there are opportunities for advisers to maximise their income.

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