Branching Out - Resimac

Recommendations

Info

feature / insurAnce Covering your clients 12 / brAnching out Story / Vivienne Kelly As clients take on new responsibilities, brokers are well placed to offer the product that will safeguard their future
Insurance Is one of the most frequently offered cross sell products and one of the most established with mortgage brokers who have chosen to diversify their offering. With responsible lending regulations now in place, an insurance package will support the duty of care that brokers need to extend to their clients, some of whom would need insurance more than others. However, cross selling insurance is also an important and relatively easy way to generate additional revenue and build deeper client relationships. Australia is one of the most under-insured countries in the developed world, with many people either unable to or uninterested in protecting themselves against loss of income, accident, illness or death. Given the consequences of being unable to meet mortgage repayments, brokers are well positioned to discuss and offer insurance to clients. PROTECTION FOR CLIENTS For financially vulnerable clients, discussing insurance is a key element of a broker’s duty of care. “First and foremost, you now under NCCP have a requirement to understand your clients’ needs,” says Tim Brown, chief executive officer of Vow Financial. “Part of that, at different times, will [involve] the need to protect them and their assets. So insurance is an obvious step for brokers.” Ray Hair, chief executive officer of ALI Group, agrees. “I think the primary reason that brokers should provide insurance is that duty of care with responsible lending” “I think the primary reason that brokers should provide insurance is that duty of care with responsible lending,” Mr Hair says. “You’ve got that requirement now to assess the borrower’s ability to service the loan without undue hardship, and it’s at that point that you can actually have the conversation with them about taking on the additional debt and ‘what would happen if...?’” Timing is therefore the key to breaking into the insurance market. “When someone’s transacting a loan, there’s no better time to review a client’s insurance products,” Mr Brown says. “You’re adding a fairly large asset and they’re improving the value of their assets, so they need to review their insurance. “A good broker would offer those coverages or at least tell a borrower they should be reviewed.” Mr Hair adds that even though a crisis may not be front of mind when a borrower takes on a new mortgage, it’s important that they – and their home – have branching out / 13
Page 1 and 2: future proof supercharGe why insura
Page 3 and 4: Improving the ‘one-stop shop’ D
Page 5 and 6: Winner of Wholesale Aggregator for
Page 7 and 8: Moving into new areas might be a da
Page 9 and 10: Supporting SMSF-backed property inv
Page 11 and 12: okers that don’t cross sell run t
Page 13: Do better with a St.George Super Fu
Page 17 and 18: Protection and peace of mind Integr
Page 19 and 20: Borrower set rate for 12 months. In
Page 21 and 22: services and start saying, ‘Well,
Page 23 and 24: A dominant force in the market Enha
Page 25 and 26: ot for all Brokers are in a prime p
Page 27 and 28: Why target specialist and non-confo
Page 29 and 30: Self-managed super funds are the fa
Page 31 and 32: SMSF Loan 70% LVR No upfront fee;
Page 33 and 34: A Smart Solution for Self Managed S
Page 35 and 36: Motoring to success Motor vehicle l
Page 37 and 38: Leasing and equipment financing isn
Page 39 and 40: Go the extra mile on cruise control
Page 41 and 42: Put it on the bill Story / Emily Mc
Page 43 and 44: Q A & Suresh Pillai, Liberty Financ
Page 45 and 46: Quick cash, long-term gains Story /
Page 47 and 48: Which direction will you choose whe

Branching Out - Resimac

Create successful ePaper yourself

Delete template?

Save as template?