View more on these topics

Tailored cover vital in tough times ahead

JAMES WATSON, SALES AND MARKETING DIRECTOR, PAYMENTSHIELD
JAMES WATSON, SALES AND MARKETING DIRECTOR, PAYMENTSHIELD

It’s little wonder that lenders are fighting back in the payment protection insurance battle, given that Morgan Stanley forecasts the bill across the banking sector could hit £5.1bn over five years – £2.1bn more than the Financial Services Authority’s estimate.

The British Bankers’ Association is seeking a judicial review of how the FSA and Financial Ombudsman Service handle PPI sales complaints, arguing that they are judging the way they were sold by rules that were not in place at the time.

Not many people will have sympathy with the banks – certainly not those who have been mis-sold cover they can’t ever claim on. This creates a PR problem for brokers who are trying to sell insurance that will protect their client should the worst happen.

But according to latest figures from the Association of British Insurers, of the 9,443 PPI complaints received between January and November last year, only 76 related to mortgage payment protection insurance.

Now that point-of-sale PPI is to be abolished, brokers have a chance to prove their worth by selling tailored cover to home owners during the enforced seven-day cooling off period.

Recent moves to restrict sickness and housing benefits and a bleak outlook for the economy means consumers will be seeking to protect their lifestyle.

Income protection products can cover a wide range of household expenditure. So brokers should coax clients to take out this cover and make themselves extra income.

Recommended

Brokers can assist agents with clients’ financial situation

As an intermediary I find estate agents seem to think a broker’s job is to sell and that they don’t want to be involved with the fiscal issues. Most don’t realise the benefit of using an independent broker to introduce to their applicants and vendors. The property sale goes hand in hand with the finance […]

B2L grows by 12% in Q3

Buy-to-let lending rose by 12% in Q3 2010, data published today by the Council of Mortgage Lenders reveals, and it is supported by ongoing demand for rental property against the backdrop of a dysfunctional owner-occupier market.  

What attendees thought of the LendInvest Property Development Academy

LendInvest ran its first Property Development Academy in London last month. Attendees from all over the UK gathered to learn how to better equip themselves with the skills they need to grow their property development portfolios. Speakers from CBRE, Gleeds, Arcadis, Gowling, Residential Edge and AZ Urban Studio gave their insights into their respective fields […]

Newsletter

News and expert analysis straight to your inbox

Sign up