Pink launches multi-tied protection panel
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Pink Home Loans has launched a multi-tied protection panel which it believes the majority of members will use ahead of its whole of market offering.
The multi-tied panel has five providers - PruProtect, Legal & General, Aviva, LV= and Bright Grey - compared with 13 for its whole of market offering.
Proposition and marketing director Neil Hoare says: “Members asked for greater levels of support in protection and I do not think you can achieve that by having 13 providers.”
He says around 80 per cent of members have expressed an interest in the multi-tied panel.
LSL bought Pink in November for £1.6m after its earlier acquisition of Home of Choice, now rebranded First Complete.
First Complete operates a multi-tied protection panel with seven providers.
John Charcol, which was bought by Towergate Financial in February 2010, operates a protection single-tie with Legal & General.
A John Charcol spokesman says there are no plans to cha- nge this despite Towergate saying that it would review the deal “very quickly” after the acquisition.
Master Adviser senior partner Roy McLoughlin says: “I am hearing of this move to small multi-tied panels more and more. How do you know if you have picked the right companies and what about if the companies you have not picked come out with new products? It is a big risk to take.
“A purist would say that is not independent and therefore it is not in the client’s interest.”
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Readers' comments (1)
Alan Lakey | 18 Apr 2011 11:30 am
A very strange and worrying comment that the multi-tie model has five providers compares with thirteen for the whole of market model.
I'm whole of market and can count twenty one providers ignoring the special services offered by such as Pulse.
Seems to me that thirteen is just a multi-tie of convenience. What is independent after all?
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