Up to a third of all clients would take up insurance if it is offered by brokers, though over half of customers not being offered the products.
The latest Commonwealth Bank/MFAA Home Finance Index found only 52.8% of Australian customers are being cross-sold home loan protection insurance.
Meanwhile, only 48.2% of customers were offered home contents and building insurance by brokers, and an even smaller 31.2% slice of the market were offered life insurance.
The findings come in contrast to the sales potential of the products, with the survey of 1,423 people finding that 34.1% of customers take home and contents insurance if offered.
“A growing percentage of borrowers are willing to have brokers offer them insurance products,” CEO Phil Naylor told Australian Broker Online.
“That gives brokers the opportunity to enhance their revenue and business profitability and be seen by consumers as a source of other products and advice.”
Naylor said in general, brokers are trusted by borrowers to offer them insurance prodcuts, but would need an AFS licence if they were to consider selling insurnace themselves.
Being a referrer is something brokers can do easily without an AFS, he added.
“There is scope for all those options and it’s really up to individual brokers to decide about the depth of their participation.”