The Professional Advisor Alliance is cutting the cost of the term insurance leads it sells to intermediaries.
The PAA will cut leads by 30 per cent to £35 from £50. The company says the move has been prompted by an increase in the number of leads it is getting from financial services website moneysupermarket.com.
Moneysupermarket provides users with online access to financial product comparison tables.
Consultancy Mintel carried out research for the PAA last December among 200 intermediaries and found that 24 per cent of the PAA's term insurance leads convert to immediate business.
The research shows that 40 per cent of people contacted were expecting to receive a call and were ready to discuss their needs and 26 per cent were interested but not quite as prepared to buy a product.
The PAA sells mortgage, term insurance and pension leads to brokers and IFAs. Mortgage intermediaries using the service can control the number of leads they get by capping the number or suspending the service if they are ill or on holiday.
Director Stuart Glendinning says: “Term insurance leads benefit from speed in terms of sales and commission receipt. The PAA is expanding and we are recruiting intermediaries that know the term insurance market and are capable of delivering quality advice that will benefit the customer.”