TMA Distribution Indicator reports renewed DA optimism

Nia Williams

January 17, 2011

TMA’s December Distribution Indicator focused on directly authorised brokers’ outlook moving into 2011 and found that no brokers surveyed expected their business volumes to fall. In fact 86% said that they expected business volumes to rise with 14% expressing the opinion that they would stay the same.

Results from the survey also found that 57% of respondents suggested that they expect mortgage lending figures to stay roughly the same in 2011 when compared to overall figures reported in 2010. Around 38% expect lending levels to rise over the course of 2011 while only 5% thought that this figure would be lower at the end of 2011 than at the end of 2010.

When predicting the performance of house prices, just under half (48%) expect prices to be roughly the same at the end of 2011 as at the close of 2010. In a contrasting result 26% said that they expected house prices to have risen by 0 to 5% whilst exactly the same number (26%) believe that they will fall somewhere between 0 to 5% in 2011.

In another section of TMA’s monthly Distribution Indicator when posed the question; With diversification being the key to mortgage brokers moving forward, in your opinion which sectors offer the most potential for increasing revenue streams in 2011, an overwhelming two thirds of DAs (65%) pointed to protection as the sector offering the most potential.

This question offered respondents the opportunity to choose more than one option. The next popular choice was buy-to-let which polled 28%; 20% cited commercial as an area of growth with 15% plumping for equity release and 10% for general insurance. Other areas suggested were regulated pensions and investment advice and specialist packaging.

Commenting, Phil Whitehouse, head of TMA, said: “It’s always good to start the New Year on a positive note and despite predictions of intermediary numbers falling the results of this survey indicate that DA brokers are looking to 2011 with a good level of optimism.

“Of course challenges do remain for DAs and it’s imperative that distribution partners such as TMA continue to work hard and add value to intermediary firms. It’s also interesting that so many respondents have highlighted protection as the sector offering the most potential for increasing revenue streams in 2011.

“The simple truth is that there has never been a better opportunity for intermediaries to engage with clients to assess their protection requirements as increasing numbers of people remain underinsured and it’s good to see DAs recognising this.”

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