One-third of ARs to go DA

A third of appointed representatives are looking to switch to being directly authorised, a study from Charterhouse Research has revealed.

Many are aiming to make the change to give them more freedom to offer customers a wider range of products. By contrast, just 5% of broker DAs are looking to switch to becoming ARs.

The consultancy has produced a report titled Mortgage intermediaries – the regulated environment, tracking the intermediary market in the face of regulatory changes.

Intermediaries are evenly split between directly authorised and those with appointed representative status.

A whopping 91% of intermediaries are now authorised to advise on general insurance. With house insurance and protection natural partners to a mortgage, mortgage brokers clearly see this as a way to boost revenue.

There is widespread optimism that the volume of GI business will increase. Nearly half, 49%, of respondents expect business levels to rise while only 5% anticipate a decrease.

Intermediaries are most optimistic about the outlook for life insurance sales – 57% expect volumes to increase and only 1% predict a decrease.

Respondents are also optimistic about mortgage payment protection insurance, with just under half, 47%, anticipating growth. The picture for critical illness is more mixed with 42% predicting an increase but 17% anticipating a drop.

Julie Irwin, director at Charterhouse Research, says: “Talking to customers about the protection available is a natural extension to mortgage advice. Though rates and price remain a dominant driver of provider choice, the importance of good service shouldn’t be underestimated, particularly in an environment where the sales process has lengthened.”