Brokers warned against 'one-dimensional' sale

by Mackenzie McCarty30 Oct 2012

A leading insurnace broking firm has warned mortgage brokers to focus on the range of cross-sell opportunities that exist within the lifecycle of a mortgage client.

Following the release of data last week which showed that brokers were failing to capitalise on the full potential of insurance cross-sales, Lifebroker chief operating officer Hugh Peck said there were a number of opportunities.

"Brokers have many opportunities to cross-sell insurance products. For example, they can look at current clients who have been offered insurance in the past and not taken it up," Peck said.

Likewise, current clients who had purchased insurance in the past could be offered a comparison to ensure they're still getting the best cover available, in terms of both product and premium.

"At the time of the loan application is also a good time, but many people want to make sure their loan applications are approved first," he said.

Peck said more consumers are "getting used to the idea" of mortgage brokers introducing risk products, but he warned against a "one-dimensional" view that might see brokers only offer insurance at the time they apply for a loan, which was not always the most opportune time.

A recent survey conducted by the Commonwealth Bank and the MFAA found that up to a third of customers would take up insurnace if it was offered to them by a mortgage broker. However, the survey found only half of all customers had actually been offered insurance by their broker.

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