Brokers are leaving money on the table with borrowers, with fewer than half of consumers being offered risk products.
The Commonwealth Bank and MFAA Home Finance Index has revealed that brokers are missing cross-sell opportunities with clients. The survey of borrowers, conducted by Core Data, found that only 42.9% of clients are offered home insurance, fewer than a third are offered life insurance and only 47% are offered loan protection.
But the MFAA has claimed that the opportunity for cross-selling is strong, with high conversion rates for insurance when clients are offered the products. Thirty-six per cent take up home protection insurance, nearly 30% choose to take on loan protection insurance and 18.4% buy life insurance priducts.
The survey also found that first homebuyers were most likely to take up all three forms of insurance, while nearly 20% of next homebuyers were likely to take up loan protection products.
"The survey shows that mortgage brokers have a great opportunity to cross-sell insurance products, with both young and mature borrowers showing they are open to opportunities to protect themselves. Quite a few of our members have already snapped up this opportunity to grow their businesses and I encourage more companies to investigate this area of growth," MFAA chief executive Phil Naylor said.
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