Kevin Paterson, sales and marketing director, Assurant Intermediary gives handy advice to intermediaries looking to increase their GI involvement.
Not so long ago, general insurance was seen as the poor cousin to mortgage arrangements and life insurance policies.
With business flowing through the door, it was easy to make money out of mortgages and only a small proportion of people really had any interest in pushing buildings and contents and the like. As the housing market has ground almost to a halt during the recession, however, there has been resurgence in interest among intermediaries in the sale of general insurance products. Most intermediaries have a strong client bank and every opportunity to generate an income stream has to be seized. As a result, the general insurance and protection market has experienced real growth over the past year.
However, it’s new territory for many intermediaries who have been fortunate enough not to have had the experience of a recessionary environment before &ndash so here’s a brief overview of this insurance sector and some things to consider when sourcing a provider.
Essentially, general insurance (sometimes called property and casualty or P&C insurance) is a catch-all for any type of insurance which does not involve death as the main risk &ndash so includes the key personal lines of insurance such as home and motor as well as more specialised commercial risks such as marine. Notwithstanding the popularity of sailing in this country, I’ve yet to encounter any intermediary whose clients have such specialist requirements so in reality the vast majority of general insurance opportunities cover the following key lines of business:
- Buildings and contents insurance
- Landlords’ let property
- Home emergency cover
- Accident, sickness and unemployment insurance
- Income protection
- Private medical insurance
- Critical illness insurance
It might come as a surprise to some to see the last three products listed, however the FSA does include non-investment protection products in the general insurance mix.
Selling general insurance is no different to arranging a mortgage when it comes to treating customers fairly, and so it’s essential to ensure you identify products that are suitable for your clients’ individual needs and that they understand the terms and costs involved.
It’s equally essential for an intermediary to source products from a general insurance provider that also meets their own needs and way of working. There are a range of providers such as Assurant Intermediary, Paymentshield and Legal & General. Some of the lenders also have their own general insurance propositions that are worthy of consideration. Just as consumers are encouraged to shop around, I would strongly recommend an intermediary getting in touch with a handful and getting a business development manager in from each one so that you can get a first-hand feel of the quality of their offering including the products themselves, how you can access them, and their commission structure.
It’s also worth looking at how a provider can help you manage your general insurance marketing effort. Consider what sales aids, brochure ware, product information and client communications they can provide to help generate interest and assist with the sales process. The need to improve marketing efforts is paramount but at the same time, you need to account for every penny of spend and so a ready-made toolkit from a provider can prove to be extremely cost effective.
Finally, don’t ignore the value of management information. Maintaining effective control of your pipeline is just as important when selling general insurance as it is when arranging mortgages. Working with a provider that can help you keep track of cancellations, lapses, claims as well as giving you full RMAR level reporting is a godsend in terms of cutting down the administrative burden, allowing you to maximise your sales time.