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We help brokers bridge the upfront income gap

I would like to clarify Paymentshield’s position regarding mortgage payment protection insurance, as the letter from Alex Groom (Mortgage Strategy February 16) erroneously states that we have withdrawn from selling accident, sickness and unemployment cover via brokers.

While it is true that we have decided to only offer MPPI to clients taking out new mortgage agreements and stop selling unemployment-only cover on the advice of our underwriter, unemployment insurance is still part of our MPPI product MortgageProtector.

We and our underwriter Norwich Union are not immune to the business challenges of the time and the rise in unemployment has lead to a big increase in claims.

What is concerning is the assertion that we are abandoning brokers, thereby cutting off an important income stream.

Nothing could be further from the truth. In the past 18 months we have encouraged brokers to sell general insurance.

We have also introduced a flexible double indemnity commission structure that pays two years’ commission upfront so brokers can make up to 50% commission within a month of the policy start date, based on the typical level of 27.5%.

We are making selling GI easier with our cross-selling toolkit. As well as information on how to cross-sell, this contains a range of useful material such as cross-selling letters, sales aids and tips to help brokers grow their profits.

With mortgage lending falling off a cliff, brokers who move to our double indemnity commission option and advise clients on GI can bridge some of the upfront income gap.

Sandy McPherson

Head of Marketing

Paymentshield

By email

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