Comment: Pigs might fly – straight on past


Not bothering with GI is a risky game – you will look like a part-timer, dipping your toes in now and again

Imagine you had a piggy bank and were saving to buy a car. Into it you put all the notes you could, all £2 and £1 coins and the odd 50p piece. Any 20p, 10p or 5p coins you threw away, and you did not bother to pick up coppers when received as change. The big sums were the denominations that would get you most quickly to your total.

Then one day you realised you did not have any big sums left to save. Only then did you start putting the smaller coins into your piggy bank too. Such an analogy may sound foolish but many brokers are taking this approach to their business.

It amazes me that, in today’s market, despite the regulatory implications and the fact we are only a few years past one of the toughest times for brokers in recent history, general insurance is still seen as an afterthought. A huge number of brokers pay attention to it only when they do not have much mortgage business on. At any other time, protection falls by the wayside once again, with brokers all but telling clients to source it elsewhere.

Not long ago they might have had reason for doing so. The GI sales process was clunky and cumbersome, often taking too long compared to the commission it garnered.

But that is no longer the case. Huge improvements to systems have been made by GI providers across the industry. And more is being done.

The fact is this: not bothering with GI is a risky game. Brokers who actively promote themselves as mortgage and GI specialists will come across as the experts and you will look like a part-timer, dipping your toes in now and again. Which of these is going to attract the consumer with protection needs?

Jason Berry is director of sales at Uinsure