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Split over education on cover deals

Brokers are split over whether protection providers should give them more education about their products, says Alliance & Leicester.

Research by the lender has found that 51% of brokers think they need more education from protection product providers while 46% feel they already know enough to promote the products themselves.

Mehrdad Yousefi, head of intermediary mortgages at A&L, says: “It is always a challenge for product pro-viders to balance the education of brokers and consumers.

“In some cases it may be appropriate for product providers to highlight features and benefits of products more frequently so that brokers can become more familiar with the products they promote to their clients.”

But Louise Colley, head of protection marketing at Norwich Union, says that the constantly changing range of protection products available on the market means brokers should be fully educated in all aspects of them if they want to treat their customers fairly.

She adds: “There has always been a view that protection products are easy to sell but given the balance of time brokers have to promote insurance against the time they spend selling mortgages, they are not.

“Brokers need to be on top of their game to give customers the best and most up-to-date advice in such a short space of time.”

Norwich Union claims that on average, brokers have only around 20 minutes to sell protection products. It feels that this is a false economy time-wise as without thorough and sound advice and the right protection being in place, mortgages could be in jeopardy.

Colley says: “We would be interested to know why 46% of brokers feel they do not need educating because it is essential for them to be continually updated so they can make the right choices for their clients rather than cram in information at the end.”

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