Aggregator Outsource Financial believes a new partnership with home loan protection insurance provider ALI Group is a beneficial move for both its broker network and their clients.
Announced yesterday, the partnership will see ALI Group become Outsource Financial’s preferred distributor of home loan protection, which the aggregator believes will fill a gap that was present in what it offered to its broker network.
“At Outsource we deal heavily with planners and accountants and we have core percentage of loan writers. While the planners and accountants have an insurance offering, we found there was a gap for our members whose core business is lending,” Tanya Sale
, Outsource Financial chief executive officer, told Australian Broker
“So we had to come up with an offering for those members at that was probably the main reason for this initiative,” Sale said.
Sale said loan protection insurance is becoming increasingly popular with buyers and she also believes offering it to borrowers should be something that becomes more prevalent within the industry.
“I think going forward this is a no brainer. The consumer comes to the mortgage broker for an overall look at their entire situation. I think offering an insurance service goes hand in hand with that transaction,” she told Australian Broker
“Our client needs analysis process very clearly asks consumers some questions around insurance. As long as our brokers have at least told their clients what’s available and shown them the options, then it’s up to the client to sign something to say no and it means our members are covered if something happens down the track.
“We don’t want situations in our industry where there was an insurance offering that might have helped somebody, but the borrower finds out the broker didn’t offer it until it’s too late.”
Huy Truong, CEO and co-owner of ALI Group, said there is a growing recognition in the industry about the importance of client protection.
“We are seeing more brokers and broker groups commit to a strategy where client protection is a core part of the service they provide and we are delighted to see Outsource Financial add to that growing list,” Truong said.
While Sale believes the partnership is important due to the protection it offers both brokers and borrowers, she also believes ensuring the aggregator’s network has a full range of products to offer their clients will have other positives.
“We have a saying that retention equals growth. We don’t necessarily say to our members that growth will come from acquisition.
“Growth is going to come from making sure you have a strong relationship with your clients and making sure they know you’ve got their best interests in mind and this is an important part of that.”