Some forecasters are predicting that the implementation of the Retail Distribution Review and the Mortgage Market Review could affect IFA income by up to 30% and up to 15% for insurance advisers.
While it’s not a cheerful thought it doesn’t need to be a worrying one if action is taken to build up additional income streams. It’s becoming clear that advisers who can diversify into other product areas are the ones who will be best placed come 2012.
We have seen a shift in the volume of general insurance being sold by the intermediary market in the past 12 months and volumes continue to rise although mortgage volumes are not following suit.
This is largely down to brokers as they revisit their client banks and sell products at client reviews.
Irrespective of where the opportunities come from advisers can expect to earn at least £15,000 a year just by selling two policies a week.
By 2012 that figure could be nearer £40,000 with renewals and business growth.
Compare that with the number of clients you see and it makes for interesting reading.
With sales comes compliance. Many advisers are required to obtain three quotes for each GI sale and have started to take advantage of the fact that some providers furnish them with four quotes, thus saving them the need to visit numerous websites.
So they simply quote and, where suitable, sell. And with evidence of research taken care of at point-of-sale it’s a case of job done quickly and easily.