The bank believes that regardless as to whether we see a housing market recovery this year or not, intermediaries could still supplement their business revenues by cross selling insurance products to homeowners.
On average only one in five homeowners will purchase buildings or contents insurance when they take out a mortgage with an intermediary, leaving a massive 80% of borrowers as potential insurance customers.
Ricky Okey, managing director of Abbey for Intermediaries, said: “It is no secret that insurance offers one of the most attractive income sources for intermediaries, and yet there are still so many who overlook it as a revenue stream.
“The housing market is still contracted and although there are some positive signs that may indicate growth this year, we are a long way off previous levels. Brokers are missing out if they do not take advantage of the opportunities available to them in this lucrative market.”
To support brokers, Abbey for Intermediaries has this week made some changes to its Additions home insurance range including reducing premiums for customers by an average of 17% by introducing a panel of three insurers to oversee the range, Aviva, Zurich and Groupama.