View more on these topics

Life cover sales up as brokers get into cross-selling mode

Insurers say research showing only one-third of new mortgages are without life cover is a sign that brokers are starting to offer more cover.

Last year the Association of British Insurers recorded 636,973 new mortgage-related life assurance policies written, but the Council of Mortgage

Lenders recorded 925,000 new mortgage advances.

Financial research firm Defaqto says that with unemployment on the rise, this is a key time for consu-mers to make provisions against sickness, critical illness and loss of income.

Ben Heffer, insight analyst for protection at Defaqto, says that in some circumstances life cover is not required.

He adds: “The protection gap does not just apply to life cover. It is also a problem when you look at income replacement products, with little income protection being sold.”

But Kevin Paterson, sales and marketing director at Assurant Intermediary, says: “I am encoura-ged by the numbers because in previous years, the penetration of life cover to mortgage sales would have been well below the almost 70% quoted here. It shows brokers are becoming more adept at crossselling in the tough environment.”

Recommended

john_murray.jpg

Cooking up trouble on the regulatory front

I was either brave or foolish when, in 1969 at the tender age of 22, I bought a house with a mortgage despite the fact that there was no Lord Adair Turner or an industry of quangos to watch over me.

Northern Rock promises to bring back £99 mortgage fee

Northern Rock last week pledged that its £99 mortgage application fee offer would be back despite having to pull it last Monday. The lender originally announced on August Friday 20 that it was re-ducing its application fee for resi-dential purchase and buy-to-let mortgages from £250 to £99. But it says that due to an internal […]

Intermediaries did not complain when they got exclusives

Regarding the article on the government’s stance on dual pricing and readers’ comments on Mortgage Strategy Online, I’m sorry but no brokers complain when they get exclusive deals from lenders, especially when these are priced less than direct products. Yes dual pricing is annoying, but that’s how it is just now. I charge a small […]

Newsletter

News and expert analysis straight to your inbox

Sign up