Negative Media Focus has no Effect on MPPI Sales
A large number of brokers have reported that they have faced a negative impact on selling their MPPI, due to the ongoing regulatory investigations into PPI by the Competition Commission and FSA.
The Mortgage Alliance, along with Cardiff Pinnacle conducted an online survey, the results of which showed that around 64% of those who responded felt that there was no negative effect on selling of MPPI, in spite of the intense media attention that it received, as well as the regulatory investigations.
While around 21% felt that these implications did have an effect on sales, 15% felt that sales were not affected due to this media coverage.
The need for brokers and their clients, to have the choice of advising on buildings insurance, household and mortgage insurance, was also stressed on this survey.
Around 49% of the respondents felt that it was extremely important to have the option of being in a position to offer buildings and household insurance and MPPI. This was reflected in the results of the survey.
Another 26% felt that this option was “very important” and another 16% felt that these were important, 5% responded that for them this option was “fairly important” and barely 4% felt that this was not important to them.
Other aspects of the survey results revealed that nearly 97% felt that customers should have the option of being able to spread their household repayments over a period of 12 months. Barely 3% felt that this did not make too much of a difference to them.
The survey also questioned brokers as to how they preferred to receive their commission. 44% respondents felt that they were not really concerned if they were paid an advance either monthly or annually.
But around 33% did mention that they preferred an annual payment. Though 23% did reply saying that they preferred if their commission was paid on a monthly basis.
TMA launched this GI survey, and the main purpose of this survey was to collect feedback and the opinions on the present market condition, in terms of household as well as MPPI.
The results of this survey will help TMA address and focus on, any future developments in the market or potential fears, in the future.
Chief of TMA, Phil Whitehouse felt that undertaking this survey has proved beneficial to them, as they collected some important information in this most important sector of the market. And will help them understand what brokers were looking for.
He further added that brokers should be offered value so that they could improve sales and income/ this is what any good mortgage club should offer its brokers. And also stated that TMA would definitely be looking at the varied elements of this survey, which would in turn help deliver value to their members and a hard to refuse proposition to the market.
National sales manager at Cardif Pinnacle, John Harrop, further added that at Cardif Pinnacle, they were in a constant endeavour to review, upgrade and update their products. The results of the survey were extremely beneficial as it has collected feedback from those who sell the products at the point of sale, and who are the most important. The survey, he clarified would help them set a foundation for future product development.