S&P urges brokers to ‘Break a Bad Habit’
The recent debate surrounding payment protection insurance (PPI) has had a negative impact on the image of insurance cover and sales of products such as mortgage payment protection insurance (MPPI) have suffered as a consequence.
Backing up the campaign is a drive to give brokers more incentives to sell insurance, with the aim of attracting advisers who admit the rewards for them are often not worth offering the cover.
Bruce Reid, managing director at S&P, said: “We believe that many brokers are either overlooking the real business opportunities contained within the general insurance market, or are in the habit of selling high commission and low premium products at the possible expense of their client’s demands and needs.
“Our ‘Breaking a Bad Habit’ campaign is about changing behaviour, training and education. We believe we can help intermediaries break these bad habits and show them how to increase sales and commission, and perhaps more importantly offer their customers the right products to match their needs.”
Within the campaign, S&P is offering brokers the choice of taking either monthly or first year commission on an indemnity basis on MPPI and buildings and contents.
It is also offering benefits for the client, with 14 months cover for the price of 12 and enhanced no claims discount system.
Jason Richardson, director of YooToo Financial Services, said: “The market is being better educated to sell more policies and is now recognising its true worth. MPPI is getting increasing exposure regarding its earning potential for brokers and its importance for clients so the campaign will be useful in pushing that. However, companies must retain their competitiveness.”