View more on these topics

‘Raise rewards to encourage sales’

CWC Research director Clive Waller believes commission for selling income protection must be increased and processing and underwriting times reduced if sales are to improve.

Speaking at the Osney Media Protection Summit in London last week, Waller warned that advisers will not look at the product until they are paid a fair reward for the time they spend with clients advising on the product.

According to Swiss Re’s latest Term and Health Watch report, income protection sales fell by 11.5 per cent in 2006 – the fourth consecutive year that sales have declined.

The report says fewer mortgage advisers are recommending protection because they could sell another mortgage for the same amount of time and probably less work and liability.

Waller said: “Many advisers will not bother selling income protection unless they get paid properly. You will sell a product if the need can be justified, the reward is attractive and the process is commensurate with the reward. Salespeople need the right incentives.

“If income protection provided the same rewards as payment protection insurance, banks would be selling it right now. Surely, if we can rework it to make the processing better and improve the rewards, it will be a winner.”

Direct Life & Pensions sales and marketing director Richard Verdin said large numbers of applications are being rated or declined and only 60 per cent of applicants receive the quoted premium. This means many advisers are doing more work that they are not being paid for.

Verdin said: “Quote properly and pay your distributors properly because a lot of them are doing work they are not getting paid for because you, the life companies, are rating and declining applications that they used to take on.”


Alliance & Leicester restricts new build LTV at 70 per cent

Alliance & Leicester has capped new build flats and nearly new flats loan to value to 70 per cent with effect from November 19.In an email to brokers the lender says: “The expansion of the New Build market in recent years has resulted in an increasing array of discounts and incentives being offered on New […]

Check on company policy for presents

Office staff are being warned to check their companies’ insurance policies before storing Christmas presents at work.Insurance broker Caunce O’Hara says many staff use their lunch break to purchase Christmas presents, but companies’ insurance policies often do not cover against the theft of personal belongings.Business development executive Keith Scowcroft advises people to check their company […]

Vive la difference

By failing to recognise disparities between European markets, investors risk missing good opportunities

Repo land

Tanya Powley assesses the massive number of foreclosures sweeping throughout the US as the sub-prime crisis hits home with a vengeance

Japan 2017 Outlook: Abenomics 2.0

By Chris Taylor, head of Japanese Equities, Neptune Abe, having reinforced his political position domestically, will most likely hold off any further major policy enactments until after president Trump has settled into the White House and enacted some of his own. Then a relaunch of the Three Arrows programme is likely, or Abenomics 2.0, including […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm