Paymentshield in the lead up to regulation undertook an agency registration process which affected over 28,000 mortgage intermediaries. This provided substantial evidence that the regulation of insurance products would leave a significant shortfall in the market’s new sales penetration rates. The launch of the introducer facility will address some of the impact that the changing market created.
Stuart Pender, Paymentshield’s Chief Executive:
“Insurance product sales have become an integral part of the new mortgage sales process for intermediaries and over the last 3 years and as a result we have seen our intermediary base quadruple to over 25,000 active members. During this period, we have been highlighting the positive effect that insurance renewal commission can have on a business and many intermediaries have established a real appreciation for the reliable stream of cash flow income it provides – after all, a general insurance sale can increase the earnings of a mortgage intermediary by up to 65% per mortgage transaction.
Nevertheless, the statutory regulation that came into effect in January 2005 has meant that approximately 15% of our historical members did not take up the necessary authorisation for the sale of non-investment insurance contracts. This leaves a significant gap in the market that our introducer facility will address allowing intermediaries to continue to enjoy the benefits of the general insurance sale and meet their clients needs.
Gareth Riding, Group Marketing Director added:
“We have worked hard to enhance the profile of insurance in the market and to deliver a positive message about regulation for the last 18 months, including the Roadshows and FSA compliance seminars we hosted during 2004 where more than 10,000 intermediary attended. This latest initiative is further demonstration of us responding to regulatory change to support intermediaries
The Marketing message is simple; rather than arranging or advising on general insurance sales, why not simply introduce your clients to Paymentshield, where we will sell the policies and you will receive the long-term renewal commission rewards?”
The Paymentshield Introducer proposition sees Paymentshield concluding another significant alliance with an external industry specialist Rossbank, following the 2004 Alliance with Bankhall for compliance facilities. Rossbank have grown to become one of the markets leading telesales operators with specialist experience in insurance sales.
Kieran Hedigan, Rossbank’s Chief Executive commented:
“Our team of telesales advisors have been actively selling Paymentshield products for various customers for the past 3 years and have developed a unique affinity with the policies that Paymentshield supply as well as the hundreds of dedicated staff they deal with at Paymentshield on a daily basis.
This opportunity provides a clear win-win situation for all parties involved; the client gets a great insurance deal, the intermediary gets the commission stream that they are accustomed to, Rossbank has won a prestigious contract with Paymentshield.”