Citibank has announced the launch of a general insurance referral service, whereby mortgage brokers will be able to ‘tailor’ the insurance sales process to their clients without giving specific advice.
The lender’s head of mortgage strategy product and marketing, Belen Lopez Denis, tells Australian Broker the service, signed in conjunction with Allianz Australia, recognises the primacy of the broker’s relationship with his or her client.
“A mortgage broker is personally selling the home loan and at that point in time, there are a lot of evaluations going on in a client’s mind – particularly when they’re making such a big investment - and it actually requires a person to think about their personal situation.”
The service will allow brokers who to tailor the insurance sales process to the needs of the client, agreeing the most appropriate circumstances and time for an insurance specialist to talk to the client.
“We have brokers who are full financial planners as well as brokers are just brokers. We’re setting up a program that doesn’t involve advice – we get our insurance specialist to advise the client.”
Lopez Denis say that, once in place, the broker commissions for referring each policy will be paid up front, regardless of the client’s choice on premium payment type or frequency.
Citibank head of broker distribution, Aaron Milburn, says the Citibank General Insurance Service is an example of the lender bringing ‘genuine value’ to their brokers and clients.
“There are similar models out there, but this should improve the process for both broker and client. We recognise that insurance brought through broker referrals has a high retention rate and we are willing to pay upfront to ensure the broker receives what they’ve earned.”
As part of the program, mortgage brokers will have access to buildings, contents, landlords and motor insurance through the service, with a range of commissions available.