Despite negative media coverage MPPI sales stayed strong

Posted 2008-08-13

A survey by The Mortgage Alliance and Cardiff Pinnacle revealed that two third of brokers did not feel that the ongoing regulatory investigations into PPI by the FSA and the Competition Commission had a negative effect on the selling of MPPI.

The results show that 21% of brokers felt that the recent media focus and regulatory investigations partly had some impact on sales and 15% reported no effects on the selling of MPPI.

The survey also points out that having the choice to receive advice on household and buildings insurance as well as mortgage insurance is also considered as important by brokers and their clients.
49% of brokers reported that being able to sell household insurance, buildings and contents insurance in conjunction with MPPI was “extremely important”.

26% of respondents said that having this option was “very important”, 16% highlighted that it was “important”, 5% reported that this was “fairly important” and only 4% said that having this option “was not important”.

The online survey also highlighted that 97% of respondents felt that being able to offer customers payment facilities allowing them to spread monthly repayment over 12 months was “important”, while only 3% considered that it was not important.

With regards to the payment of commissions, the majority of brokers (44%) said that whether their commissions were paid monthly or annually in advance was not important while 33% said that they preferred annual in advance payments and 23% reported that they favoured being on a monthly drip.

The GI survey was launched by TMA in order to gather feedback and views on the current market in terms of both household and MPPI.

The survey results gathered will highlight any worries, opportunities or trends in the market which TMA will look to operate in.

Phil Whitehouse, head of TMA, said: “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.”

John Harrop, national sales manager at Cardif Pinnacle, added: “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.”

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