Diversification drive doubles insurance sell

by Adam Smith01 Jun 2012

A major aggregator says its diversification drive is working, with insurance sales doubling over the last few months.

AFG has said it hit a record for insurance sales in May, selling 600 contracts in a single month for the first time. The company's general manager of sales and operations Mark Hewitt said the number represented significant growth since the start of the year.

"This has grown from a historical level of around 300, and particularly over the last three or four months we've noticed a big increase. The is primarily due to the support of our two insurance partners and our brokers' preparedness to consider financial services products," he said.

The aggregator's insurance sales, through TAL and Allianz, operate on a no-advice basis, with brokers and clients giving consent to be contacted by the insurers. Hewitt said many of the company's brokers lay the groundwork for insurance cross-selling ahead of the contact.

"The most successful brokers are the ones who pre-position it and say, 'I have a relationship with this insurance provider. Would it be OK for them to contact you?' and emphasize the importance of getting covered," he said.

While Hewitt said many of the company's brokers prefer to direct sell insurance products, he said the partnership with TAL and Allianz has allowed brokers previously uncomfortable or unfamiliar with the products to diversify into risk.

"Cross-sell has been the mantra of the industry as long as I've been involved, only now with the help of this system we've been able to simplify it and make it simpler for the consumer and the broker to transact the sale," he said.

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