Pessimistic media leaves MPPI sales unscathed
As reported by nearly 2/3 of brokers, the ongoing regulatory investigations into Payment Protection Insurance (PPI), by the Financial Services Authority (FSA) and Competition Commission, have had little impact on selling Mortgage Payment Protection Insurance (MPPI).
The Mortgage Alliance (TMA), in conjunction with Cardiff Pinnacle ran an online, General Insurance (GI) survey which showed that nearly 2/3 of respondents (64%), felt recent media attention and regulatory investigations have had little negative impact on the selling of MPPI. The GI survey was launched in order to gain feedback and specific views on the current market in terms of both household and MPPI.
The survey reflected the following results pertaining to media attention and investigations, from respondents:
Implications have had a mild effect on sales — 21%.
Implications have had no effect on sales — 15%.
The survey also highlighted the importance (from “extremely important” to “not important”), for brokers and their clients to have the option to advise on household, buildings insurance and mortgage insurance.
The results of the respondents’ poll revealed the following results:
Claiming the option to be “extremely important” — 49% .
Claiming the option to be “very important” — 26% .
Claiming the option to be “important” — 16%
Claiming the option to be “fairly important” — 5%.
Claiming the option to be “not important” — 4% .
Other essentials of the survey showed an immense 97% of the respondents considered it to be ‘important’ to have a facility which allows customers to spread household repayments over 12 months, while only a meagre 3% reported that they did not feel it was important.
The comprehensive poll also surveyed brokers to determine how they preferred their commissions to be paid. The majority of respondents (44%), reported that they were ‘unconcerned’ whether they were paid monthly or annually. Those who claimed they preferred to be paid annually, in advance, were only 33%, while 23% of the respondents said they preferred to be paid their commissions on a monthly basis.
The results of the survey will be used to identify any potential fears or developments in the market, which TMA will use to address in future trends.
National Sales Manager at Cardif Pinnacle, John Harrop stated, “At Cardif Pinnacle, we are constantly reviewing and updating our products, and the survey has proved invaluable in obtaining feedback from the people who actually sell the products at point of sale. The information gained from the survey will provide a framework for future product development.”
Phil Whitehouse, head of TMA, added, “This survey conjured up some very interesting points, and certainly helped us garner a better understanding of what brokers are looking for to get the most out of this important sector of the market.
“A good mortgage club should offer brokers added value in order to help them increase sales/income and, at TMA, we will certainly be looking at elements from this survey to bring a strong proposition to the market that will be of true benefit to our members.”