Branching Out - Resimac

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FEATURE / insurance adequate protection against unforeseen circumstances. BUSINESS BENEFITS Cross selling insurance not only helps protect the client, it can also benefit a broker’s business significantly. ALI Group offers a range of different commission structures, but the group’s standard package is a 30 per cent upfront commission with 10 per cent trail based on the annualised premium. Mr Hair estimates revenue earned from offering insurance through ALI Group can boost what a broker would earn on a $300,000 mortgage by around 10 per cent. “We also have a rewards program which is the equivalent 14 / branching out of your business will increase because you’re not relying on one stream of income; and your fixed costs remain much the same – by offering other products you offset a lot of that fixed cost and make your business more profitable.” WHAT’S ON OFFER There are two ways in which brokers can diversify into insurance: by establishing a referral partnership and referring insurance business to a specialist, or by getting qualified. Mr Brown believes both are valid and potentially profitable options but cautions against biting off more than you can chew by choosing the second option. “I always recommend referring clients to a specialist if brokers “Cross selling insurance is an important and relatively easy way to generate additional revenue and build deeper client relationships” of another 10 per cent upfront commission,” says Mr Hair. “It’s a non-cash reward, such as travel vouchers. We find that’s quite appealing to brokers and their staff.” According to Mr Brown, meanwhile, offering insurance is beneficial for three reasons from a business perspective “There are three things a broker needs to consider,” he says. “[Offering insurance] helps retain your client; the value aren’t comfortable taking it on themselves,” he says. “It depends what you want to do in terms of insurance,” Mr Hair says. “The range is quite broad, and from a broker’s point of view it’s a trade off between risk and reward.” By referring the business to someone else, you are losing control of the client to a certain extent, according to Mr Hair, but it can still work quite well – particularly because you aren’t taking on any of the risk yourself. The other option is to get qualified by completing a financial planning diploma. “If you want to do the work, and you want to take on the additional risks and responsibilities, you can become fully qualified, but that comes with increased obligations,” says Mr Hair. “You do end up with a higher earning potential though.” ALI Group occupies the middle ground, he adds. “Our products are simple and easy to understand. It’s affordable, it’s convenient and brokers don’t need to become an insurance expert.” ALI Group runs three-hour training sessions for brokers to make them aware of the elements of the different products as well as the group’s specific requirements. WHEN TO START As borrowers increase their portfolio of assets and therefore their liabilities, the financial damage they are likely to sustain if things go pear-shaped due to unforeseen circumstances also increases. Brokers, provided they are willing to initiate what can be a hard conversation, are therefore well positioned to cross sell the insurance that will safeguard their future. According to Mr Brown, there’s no better time to start than right now. “When a client comes to you, it’s more than likely they’re taking on larger repayments than they’re used to, so they need to look at the risks,” he says. “Brokers can help them through this, so they should start the conversation immediately.”
Protection and peace of mind Integrating ALI Group’s loan protection products in their offering can strengthen a broker’s client relationships ray hair ALI Group was established in 2003 as a specialist risk insurance business committed to ensuring mortgage brokers are able to provide their clients with convenient and timely access to affordable loan protection. We deliver quality products that are easy to understand, obtain and claim upon by way of a simple offer process, allowing clients to make an informed decision on their need for protection, says CEO Ray Hair. ali’s products Authorised Representatives of ALI Group can offer two loan protection products: Loan Protection Plan – designed to pay off the loan principal. This provides cover for Death & Terminal Illness and 11 serious medical conditions. Loan Repayment Protection – designed to assist with loan repayments. This provides financial assistance when you suffer a serious illness or injury that is likely to prevent you from making your loan repayments for a period of time. Also includes cover for 52 ‘Crisis Events’. Both products provide cover for involuntary unemployment occurring during the first 12 months of the policy. This unemployment benefit covers self-employed workers and people on fixed-term contracts. Our products are backed by two of the country’s leading insurance providers, MetLife Insurance Limited and ACE Insurance Limited. What are the benefits? Broker-controlled process – you get to maintain and strengthen your client relationship aLI group / profile ray hair chief executive officer You can provide protection for your clients in a timely fashion, with guaranteed acceptance rather than a referral which can be a lengthy process often resulting in a client being left underinsured In the context of responsible lending, brokers have a duty to ensure their clients have the capacity to service their loan without undue hardship. Offering protection satisfies this need Peace of mind – both for you and your clients Attractive remuneration, diversifying and growing your income For more information, contact one of our Regional Sales Managers: Debbie Ryan Regional Sales Manager, NSW/ACT & QLD - 0427 110 800 or debbieryan@aligroup.com.au Gabrielle Moscati Regional Sales Manager, VIC/TAS, SA/NT & WA - 0417 409 601 or gabriellemoscati@aligroup.com.au branchIng out / 15
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