Category: Business Quality
Business Assurance is a vital part of your business and improving case quality can be very beneficial. Business Assurance Supervisor at Mortgage Intelligence, Sam Clowsey, has started off 2019 by sharing his top five tips to improve your case quality.
1. Note down anything useful
Make notes on anything that is considered pertinent to the case. Commenting on criteria or customer circumstance is particularly useful to an assessor.
2. Ensure everything is up to date
Where there has been a delay in submission, request up to date bank statements and payslips.
3. Inspect bank statements
Inspect bank statements to identify additional current accounts and financial commitments. All active credit must be recorded in the fact find or commented on if recently cleared.
4. Explain why your recommendation is suitable
Ensure the justification in the Reason Why Letter clearly explains why a recommendation is suitable to a customer’s requirements. High level or generic explanations are not considered appropriate.
5. Check the documents
Check documents to ensure that they have been copied in full. New copies will be required where parts of passports or payslips are ‘cut off’. Bank statements should be consecutive and where applicable, both sides of the document must be scanned.
To become a member of our award-winning network or club contact us today on 0345 130 7446.
Head of Sales and Marketing Sharon Mawby rounds up another fantastic year of award-winning support and services for appointed representatives
What a year 2017 was! We have made plenty of great changes and expanded our services across all our departments. We have put a big focus on making things simple and useful, and adviser satisfaction and success has been our reward. We listen to the feedback of appointed representatives and respond to their needs, which means we always deliver the most useful and relevant services.
So what have we been doing for appointed representatives in 2017?
The Sales Team
The phones on the desk are always ringing with advisers looking for guidance and time-saving support. The Broker Support Team keep up to date on criteria, to help answer complicated questions regarding industry changes.
With many big industry moves and lenders added to panel in 2017, our experts on the desk have been receiving lender training all year round, and sit with lender representatives to work through criteria and USPs.
The Protection Helpdesk has been a big part of the protection success for advisers in 2017. Many appointed representatives find the time-saving initiatives provided by the desk simply invaluable. They call the underwriters to find the most accurate indication of terms, to save appointed representatives crucial time to spend with their clients.
Relationship Development Consultant Nicole Smith has been on hand to work with appointed representatives on building business and dealing with issues. Nicole troubleshoots problems, points advisers towards suitable services and supports recruitment and business development.
The Marketing Team
We launched a new suite of promotional materials at the start of 2017, and so many appointed representatives have embraced the new range. We have worked on bringing modern and relevant marketing options to advisers, such as posters and sales aids to use with clients. It’s so satisfying to see our new designs used everywhere from office windows to social media pages.
Plenty of appointed representatives have also been taking advantage of the fantastic free client newsletter service, which sends out three relevant stories directly to clients once a month. This now goes out to over 20,000 clients and appointed representatives often receive leads as a result.
Our free adviser magazine Insight has also been developed in 2017, to bring even more stories, interviews and adviser tips. After listening to appointed representative feedback, we also now offer the magazine as a digital download.
Commissions Team
The Commissions Team have been developing automation and processes to help deliver faster payments, whilst maintaining the highest level of accuracy. We know how important cash flow is for appointed representatives, and our express payment service is an essential part of that. We therefore ensure the entire team is well trained in processing all the different types of payments.
Working closely with the IT Team, the Commissions Team have transformed the way that statements are processed, to ensure an even more water-tight system. The Commissions Team never stop looking for innovative ways to ensure appointed representatives get their fees quickly, without deviating from our very high service standards.
Product Development Team
One of the busiest departments in 2017, the Product Development Team have been adding even more lenders and providers to panel. This includes mainstream and specialist lenders, to give appointed representatives plenty of options with which to help clients. The team has also developed a number of exclusives designed for the needs of appointed representatives and their clients.
With so many new additions to panel and industry changes, we knew how important this year’s events were going to be. That’s why the team have delivered plenty of webinars and workshops, as well as a brand new Specialist Lending Event, to ensure engaging and insightful support for appointed representatives.
After listening to appointed representative feedback and analysing the market, the protection panel proposition has also been refreshed. This includes the development and expansion of two new panels, and the implementation of protection portal software SolutionBuilder.
The IT Team
Working behind the scenes to bring the best technological solutions to appointed representatives, the IT Team have been developing several in-house systems and integrated a range of new software. The Team also work to help appointed representatives in their day to day business, by developing the adviser website Broker Zone, helping it run smoothly and work for appointed representatives at all times.
SolutionBuilder has also been developed to support client protection conversations. This new addition means that appointed representatives now have the ability to research, quote and compare protection needs. This has now been integrated with our point of sale system, and supports single and multi-benefited products.
The Business Assurance Team and Authorisations
The Business Assurance Team have continued to focus on case quality in 2017, by educating appointed representatives on systems and processes. Many appointed representatives were invited in to visit the office in 2017 and spend time with the team, to give them the opportunity to see a case being assessed from our perspective.
To continue to support case quality in 2017, the Business Assurance Team have launched a useful catalogue of videos, which show appointed representatives exactly what a case checker reviews on each section of an assessment.
The Business Assurance Team and Managers have been working closely to ensure a consistent message is delivered to appointed representatives. The Business Assurance Team are there to both protect and support advisers, and the team regularly consult with advisers on presenting cases and documentation requirements.
Authorisations has been moved back in-house, allowing more control on timescales and developing relationships with new appointed representatives coming on board. This has enabled them to work on the smooth transition from application to authorised adviser, and be the first port of call for appointed representatives when they join the Network.
The Compliance Team
The Compliance Team have been providing more than just telephone-based support for appointed representatives. They also write policies, processes and create material to promote positive consumer outcomes to further protect appointed representatives. The team also produce and control risk logs, implement FCA rule changes and deal with consumer complaints.
The team’s regular bulletins are a really important way to get messages through to advisers, as well as the Compliance Resources page on Broker Zone, which is always being updated to support appointed representatives on a daily basis. With many industry changes and new rules in 2017, the team have ensured they are getting the messages out to appointed representatives and keeping them updated.
Join our award-winning Mortgage Network as an appointed representative, or become a member of our Mortgage Club, to start benefiting from our fantastic range of comprehensive services and support. Call the Broker Support Team on 0845 130 7446 (opt 1) to find out more.
Product Development Manager Nathan Reilly highlights some of the big opportunities for advisers to help clients in 2018
2017 was a big year for several sectors in the mortgage industry, with plenty for advisers to keep on top of. This has made helping advisers prepare for opportunities and adapt to change an even bigger focus for our network and club this year.
To help advisers stay ahead of the game once again, I have highlighted some of the top opportunities there will be to support clients in 2018!
The cessation boom
Current data predicts that £220bn worth of mortgage product cessations are due in 2018. This is a massive opportunity to help clients ensure they are on the most suitable product for them, especially if that means they can save money on their monthly mortgage repayments.
Some lenders are increasing the number of remortgage and product transfer products they offer. Data shows that remortgaging was responsible for 37% of valuations in August 2017, which is its highest share of the market in a decade. Early signs suggest remortgaging will have another big part to play in 2018.
Base Rate rises possible
Whether or not the Bank of England increases the base rate from its historic low on Thursday 2nd November, there has been definite movement from the Monetary Policy Committee towards an increase.
Even a small upward movement could create a substantial change in consumer behaviour. Moving from just talk of a rise to the increase itself will mean people may start looking more closely at those stress margins they were tested against. Advisers will be invaluable once again, as this may also trigger a new wave of remortgage opportunities.
Changes to HMO
A recent survey found that more than 85% of all landlords were unfamiliar with upcoming changes regarding Houses of Multiple Occupation. From April 2018, landlord clients may have to carry out expensive restructuring work on properties or risk being fined.
The new laws will impose tougher minimum standards on room sizes, waste disposal and storage facilities. After the changes, some landlords may even be left with rooms they are no longer able to rent out to tenants.
GDPR comes into effect
The General Data Protection Regulation, otherwise known as GDPR, will replace the existing Data Protection Act. This will become part of UK law from 25 May 2018 and apply to any organisation that handles any individual’s personal data. The new rules are designed to give more people control over how their data is stored and for how long.
Help for mortgage prisoners
The FCA has been calling for lenders to do more to help mortgage prisoners. These are borrowers that have found themselves trapped on a lender’s SVR, unable to remortgage due to complicated borrowing scenarios.
Experts are concerned at the growing number of mortgage prisoners in the market, who often as a result of changing circumstances no longer meet new affordability and stress testing rules. Fortunately, we have grown the number of specialist lenders on panel to bring advisers more options to help those with borrowing needs that require a specialist touch.
Second phase in BTL tax relief
After being introduced in April, the changes in tax relief that landlords can claim on their mortgage repayments for second homes will reach its second phase in April 2018. The level of income tax relief landlords can claim will be restricted to the basic rate by 2020. This will affect those that let residential properties as an individual, or in a partnership or trust.
All residential landlords with finance costs will be affected, but only some will pay more tax. Landlords that won’t be affected include UK resident companies, non-UK resident companies and any landlord of Furnished Holiday Lettings. It is of course important to ensure that clients are getting the required tax advice from an expert when considering the financial effects of any tax changes.
Advances in technology
It is hard to get away from changes in technology, and this is as much the case in the mortgage sector. Robo-advice is still being looked at as a possible way of streamlining the mortgage process for consumers. Freeing up time to spend with clients can only be a good thing, and far from replacing the adviser, changes in technology could simply mean more clients will be supported even more efficiently.
A certain portion of those needing to borrow money for a home will of course be looked after more quickly through automation. But human advice is still highly valued in a sector that contains numerous borrowing scenarios, which often need looking at in more detail than simply a series of questions.
Other things to keep an eye on
EPC changes – Energy Performance Certificates (EPCs) are used as a measure of the energy efficiency of a property. Although first introduced for those buying and selling homes, they are now prevalent in the rental market as well. From April 2018, landlords will need to reach a minimum EPC level before renting their property to new tenants.
Aging population – As people live and say healthier for longer, it becomes more common to borrow into later life. Lenders are adjusting their criteria all the time to suit the changing needs of older borrowers. This includes higher age limits and a raft of more suitable options to suit their needs, such as interest-only and specialist products.
Open Banking – The CMA (Competition and Markets Authority) retail banking market investigation found that larger banks did not have to compete for market space when compared with their smaller and newer counterparts. This has resulted in consumers paying more and not benefiting from new services. The CMA is therefore implementing one of their reforms called ‘Open Banking’, a transparency initiative that the FCA finalised requirements for in September.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
National Account Manager for Protection Craig Bryce looks at the latest news regarding mental health and highlights how you can help your clients stay protected against one of the most common workplace absences in the UK.
Critical Illness Cover and Life Insurance are vital to ensure your client and their family are covered against worst-case scenarios. But what about the most common situations that clients can find themselves in?
This is where income protection comes in. It normally pays up to 60% of their income and protects against long term absence. It serves as daily peace of mind should they need time off work, your client won’t have the added stress of worrying about covering the bills.
How common is absence for mental health?
According to ECIS data, absences for mental health are as common as absences for colds and bugs. This makes mental health now one of the top three reasons for employee absence, with musculoskeletal conditions and general sickness.
The problem doesn’t look like it’s going away anytime soon either, with a recent NHS report showing that nearly a third of ‘fit for work’ notes issued by GPs are for psychiatric problems. This has now made it the most common reason for ‘fit for work’ notes to be issued, ahead of musculoskeletal diseases.
How can your client cover themselves?
Fortunately, most income protection providers pay out for absence for mental health, which unless they have budget income protection, will pay out for every occasion they are absent from work after the deferred period has elapsed.
It is also important to ensure that should your client be absent from work for mental health problems, they don’t have the added stress and anxiety of not working and not being paid. This can exacerbate the problem itself and extend their absence from work.
What if they already have cover?
A good protection menu plan that covers all the scenarios that might make your client vulnerable to financial shocks is always recommended. After all, serious illness and injury are all too common reasons to be absent long term from work, which will not be covered by Life and Critical Illness cover.
Right now, absences from work for mental health are becoming more long term, with one in five psychiatric ‘fit for work’ notes issued for periods of over 12 weeks. This means that the employer being able to cover your client during the period of absence becomes less likely, which makes income protection even more important.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Managing Director Sally Laker looks at a recent scenario that highlights the importance of communication and case checking in the property chain.
Just when you think you have seen most events linked to a sale and purchase transaction, you realise that there is always an interesting story that reminds you of the need to be vigilant. Recently a friend decided to downsize from their big family home to a newer property with no mortgage and to release some cash. The move took place but had turned out to be a nightmare for all. She assumed that this must happen all the time and was surprised that I had never come across it before.
In all there were seven people in the chain, only two with mortgages, and exchange was all set for a Thursday with completion on the following Monday. As soon as the removal vans were all loaded up everyone was waiting for the completion confirmation. They all received a phone call to say that one of the lenders had decided to carry out an ‘audit’ and therefore could not complete on that day, and they would be advised once they could confirm a completion date! So with a completely empty house, and everything in the removal van, they ended up having to pay an additional £1600 for storage as completion wasn’t until three days later. My thoughts were immediately that this must have been some sort of fraud or money laundering alert, right at the last minute. I decided to look into what kind of reasons might have triggered the lender to impose the action at such a late point in the process.
Whilst unusual there are a number of possible reasons for the lenders actions.
It was unlikely to be money laundering because this would generally be checked and picked up by lenders before completion. This is one of the key reasons that lenders will stick to a panel of solicitors that they have approved.
It is possible that when the lender system screened the transaction that the outgoing accounts details hit a trigger that stopped the transaction from going ahead. Again, although not impossible, this would be unusual as this would normally have been thoroughly checked before getting to this stage – especially with an approved solicitor. The fraud screening system may have picked up that the bank account and sort code was linked to a previous fraud, and maybe the lender did not work from a closed panel of solicitors.
Alternatively, it could be an example of a “property hijack” or false positive match. This means that the applicant appeared to be the same person screened at application stage but on closer inspection they were not.
Another possible scenario is that a new piece of intelligence was received and it matched a past case that then concerned the lender about the collateral they were lending on. It is possible that the lender received information and, given their experience from the sequence of events, they suspected the person selling the property was not the owner. That would make it likely that the solicitor would be involved too.
New build is another area that lenders are currently concerned about, mainly regarding assignable contracts, also called “contracts of novation”. This is where a developer is selling his property via a middle man who has offered to take on, for example, 20 units at a reduced price. The middle man buys them for, say, £380k each rather than the developers asking price of £500k. The middle man is confident that he can sell them speedily, which in turn, frees up cash for the developer. They make an agreement between themselves and the middle man sells them at £450k each. The middle man offers the buyer a £50k cashback off the £500k purchase price on completion. That enables the buyer to apply for a 90% LTV mortgage as the purchase price is £500k, and a credit (cashback) of £50k is passed directly back to the buyer once completed.
This should normally be picked up by the solicitor who will notify the lender, as there is no buyer deposit. If the lender finds out about this prior to the completion it would mean that they had lost transparency on the deal, and an alert would be placed on that developer and that broker.
It is impossible to say what the real reason was, and it seems that all the transactions went through, but it is useful to know what can be hidden behind a seemingly normal transaction. This example is a very good reminder of how important it is to know who we are dealing with, and to carry out thorough checks in all cases.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Stephanie Charman talks remortgages: a sector that has seen a recent surge in interest from consumers because of fixed-rate lender competition and an even lower Bank of England base rate
There is no doubt that “remortgage” is currently the word on advisers’ lips. Some are even seeing remortgages now making up nearly half of their total business. After recent CACI data also surprised many by revealing that the UK mortgage market is expected to see over £14bn worth of maturities in September 2016, the time for many of your clients to remortgage could be now.
Regular contact
Staying in regular contact with your clients is key to creating opportunities for them to save money through a remortgage. Reviewing products with your client when their mortgage is due to come to cessation, is also essential in maintaining business levels and ensuring that you are always in mind when it comes to your client and their finances.
Timing is key, and many advisers are finding that simply reminding clients that they are there to help them make the right decision is a winning strategy. Keeping an eye out for their lifestyle events can ensure you offer a review of their finances at the right time for them and you.
Rate changes
A rise in the Bank of England base interest rate (BBR), something not yet seen in years, would normally be the trigger for a remortgage rush, as borrowers grab a fixed rate before SVRs climb. Instead, it has conversely been the drop in BBR which has triggered a surge in remortgage opportunities, as lenders renew competition and offer even lower rates on fixed rate deals.
Switching to a new deal might not just save your client money, but also give them the opportunity to fix their interest rate to a low figure for the next several years. As a network, we saw a big increase in remortgage business compared with last year, which shows that advisers are already making the most of the opportunity to help their client move to a better deal.
Avoiding SVR
Standard Variable Rates, or “follow-on rates” as they are sometimes known, are currently sitting at somewhere between 3 and 7 per cent. Although these are still historically low, not all lenders have passed on the Bank of England base rate cut, so for some borrowers the margin between SVR and base rate has effectively increased. Meanwhile fixed rates continue to drop, which makes this an opportune time to remortgage for many clients to possibly secure a better deal and long term peace of mind.
Network and lender support
Many lenders have also improved their systems, underwriter access and general application process to make it as efficient as possible. They recognise that with advisers so busy at the moment, saving time wherever possible is paramount to ensuring brokers and their clients are able to make the most of the remortgage opportunities available.
Barclays amongst other lenders is making the most of the recent CACI data, offering an SVR comparison tool, to provide you with a complete overview of current SVRs that some of your clients may be paying.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
National Protection Sales Manager Bernie Buron explores several ways advisers can help make Income Protection more affordable for clients
Affordability is still one of the biggest consumer objections when talking about any kind of protection, but income protection in particular is such an underused yet common sense approach to covering finances, that breaking down the affordability barrier is especially helpful for clients.
Helping clients visualise the situation they would be in were they to lose their income is such a useful way to break down opposition to affordability when taking out income protection. Comparing the swift and stress-free claims process with the laboured and unreliable state benefits system can also highlight why income protection is such a good idea. But even when your client has recognised the benefits and the risk a lack of protection can bring, affordability can still remain an obstacle.
So in your client conversation, how can you help your clients work within their budget so that they don’t leave themselves open and vulnerable to worst case scenarios?
Deferred periods can be extended to help with affordability
Extending the deferred period on a policy will normally reduce the premiums, as it reduces the risk of pay-out for the provider. Of course as an adviser your priority is to protect your client as far as possible, which means recommending cover that starts from the moment they are no longer fully covered by their employer. But if affordability is still an issue, extending the deferred period so that your client is at least in some way covered is an option, as long as it is recorded in your client conversations and on your Reason Why Letter.
Budget income protection is a possible option
Clients should always consider longer term income protection first, as this provides the most cover. But there may be circumstances where affordability has become enough of an issue for budget income protection to become an option. This option may also better suit those on zero-hour contracts and agency workers, as their employer most likely has no legal obligation to cover their income if your client was unable to work. Most providers will limit the pay-out time to 24 months.
Menu plans can help tailor protection to your client’s budget
Menu plans are available with most of the big providers and can be a really useful and convenient way to arrange all your client’s protection to suit their circumstances and their budget. Not only do they allow you to mix and match products and tailor protection to your client, but when it comes to claiming, having all their products with one provider can deliver that added peace of mind and convenience at a difficult time. Menu plans can also help advisers discuss options and maximise cover within the ascertained budget. If affordability is still an issue, you can record this and then discuss scaling back some of the benefits, whilst still maintaining the core cover products.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
Head of Mortgages and Insurance Stephanie Charman takes a look at clients with adverse history and what advisers can do to help them
There are many reasons why a client may have an adverse credit history and may need to consider a more complicated borrowing scenario. Knowing who you can turn to help your client in these circumstances is very important and we want to help you find the right solutions for your client wherever we can.
Why might clients with adverse credit need helping?
Someone with adverse credit will most likely have something on their credit history that could mean a regular high street lender will not want to lend to them. A low credit score can be detrimental when looking to borrow. This can be caused by something as simple as not being on the electoral roll, missing a bill payment or not having an established credit history, which is why helping your clients get ‘mortgage ready’ is really important.
Recent adverse is much more damaging to the client’s credit score as most lenders consider any adverse which is over six years old. Your client may also need to remortgage to consolidate existing credit, which may help them with their credit score in the long term but should be considered alongside other potential options. Bad credit also affects both parties if your client was named on an agreement that has caused adverse credit history, regardless of which party has caused the issue.
Who and what can help clients with an adverse credit history?
As we all know, bad credit can be repaired. This can normally take two or three years, depending on the severity of the adverse credit, and some clients may have already attempted to repair their credit using credit cards, small loan, or a finance arrangement.
Some specialist lenders do not even use credit scoring on prospective borrowers, although they will still examine a client’s file. Some lenders that do this are Magellan Homeloans, Precise Mortgages, Kensington Mortgages and Aldermore. Some other main lenders will also look at mild adverse but still credit score. Positive Lending can also be used for second charges and on some adverse borrowing needs.
BTL lending is really tough on those with adverse credit, especially when the credit is caused through previous arrears, defaults, missed payments or CCJs. In this case, Precise Mortgages may consider the client under some circumstances.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
National Protection Sales Manager Bernie Buron looks at whether advisers could be getting more out of administrators and paraplanners within the firm, whilst also highlighting what they generally can and cannot do.
I have had many enquiries from advisers asking exactly what an administrator/paraplanner can and can’t do within an adviser firm. This is an important question to ask, with many advisers rightly erring on the side of caution as to how best utilise administrators within such a tightly regulated sector. But with advisers so very busy at the moment, they are eager to ensure they are getting the most value out of their resource.
I already hear of success stories where the right set up with an administrator can be a godsend to advisers, especially during busy times. But it surprised me that some advisers do not even have an office administrator, and one or two are finding the workload becoming a big challenge.
So what can an administrator/paraplanner do?
Administrators, sometimes referred to as paraplanners, are utilised by a lot of advisers to free up more time to spend with clients. In some cases, opening up the admin role can even be a good way for them to become an adviser themselves through the firm, by learning more about the role the adviser does.
I have spoken to many advisers who have fully ensured their administrators/paraplanners are helping to free up time where possible, which gives the advisers in turn more time to spend with clients and deliver great advice. Here are just some of the ways that administrators have been helping out advisers with their protection, general insurance and mortgage business levels:
Freeing up time by chasing quotes | Handling general client queries | Preparing quotes ready for client discussion | General research on client cases | Calling the protection desk on behalf of the advisers | Underwriting and pre-underwriting | Retrieving and submitting Iress quotes | Chasing medical information from clients to receive the best terms
What can’t an administrator or paraplanner do?
What an administrator should not be doing as part of an adviser firm falls into two main categories:
Advising
Advising would include discussions of appropriate terms, rate type, best lenders, C&I vs IO, suitable amount of life cover, whether it is best to go pure life or relevant life etc. It is important to recognise when a role becomes advisory and ensure this is done by a qualified adviser. This includes certifying documents which must also be done by the adviser.
Fact Finding
Fact finding is slightly more difficult to define categorically, but collecting hard facts (name, DOB, address etc) is generally ok for administrators/paraplanners to do. However, retrieving softer facts strays away from what is allowed. This may include, but is not restricted to, asking a customer their view on interest rates or questioning how they intend to repay an Interest-only mortgage.
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.
With National Storytelling Week in February, we spoke to appointed representative Caroline Hawkins about her involvement with charity Seven Families, who work to raise protection awareness among the public through telling real-life stories about those who have experienced the hardship of not having protection when it was needed most.
Caroline is an experienced independent adviser specialising in Business and Personal Protection and large loan mortgages. Working at appointed representative Direct Finance Solutions, Caroline prides herself on building long term relationships with clients over time, supporting them over the years with regular reviews and ongoing advice.
We spoke to Caroline about her involvement with Seven Families, the effectiveness of telling stories and the power of protection.
So how did you get involved with Seven Families, and how has it helped you promote the need for protection?
“As a protection adviser I have always ensured I maintain a strong presence not just with my clients but in the industry as well. This includes social media, which is a fantastic platform to get the word out and share stories. It was through LinkedIn, a very good social media platform for professionals, that I was contacted by a representative at Scottish Widows, who said that Seven Families were looking for an adviser who was passionate about protection and raising awareness to look after their seventh family, the Knights.”
“The client, Melanie Knight, had lost her job as a midwife with NHS in 2014 after prolonged absence due to arthritis. She was also diagnosed with Danlos syndrome, a disorder of the connective tissue affecting the movement of joints. Seeing the support of her employer ebb away was a painful process and it is a sad story that tells the tale outside of just the facts and figures.
“As soon as I was on board with Melanie I was able to help her with the life cover she currently had, as her provider offered access to Best Doctors. Often it is the knowledge of products and providers that makes the difference for clients, as they sometimes don’t associate the benefits of their life cover outside of the final pay out. Getting value out of their policies through ongoing support is all part of the service for my clients.”
How and why do you share stories with clients?
“I have my own personal protection story that I sometimes like to tell because it highlights not just the need for protection but also for the right advice. That is why I want to get it right for clients as much as I possibly can, because I know how difficult and stressful these situations can become. Good and bad news stories are important, to show the difference between being without and being with protection just when it is needed the most. The Seven Families story is a great example of this.
“One of the most important aspects of my job is to build long term client relationships built on trust. Not just as an adviser but as a professional friend that they can turn to for support. If a client wants me to find out more about their policy after they have taken it out, or has any other protection questions I always encourage them to call me.
“Stories can have a very powerful impact on people, sparking emotions and helping them to relate to the subject at hand. It is still important to discuss health risks and comparisons with state and employer support, but telling a story that you believe in or is close to your heart can have a real impact on clients, helping them to learn the lessons others have experienced in the past.”
We know that advisers take different approaches to protection. What techniques and formats work best for you and your clients?
“I know some firms prefer to have a protection specialist, or separate the protection conversation altogether. But I believe in letting the client know very early on in the process that we will be having a mortgage and protection conversation. I truly believe in treating customers fairly, and this means knowing your products and the providers well enough to have confidence in your advice and showing that you take it as seriously as any other part of the discussion. For me, it has always been less about selling a product, and more about helping the client protect themselves.”
“Understanding the benefits of each product is also a really important aspect of advice, and I have seen these added-value benefits make a big difference to people’s lives. Knowing which deferred periods are best suited to each client also delivers the best value out of the policy. It is after all a notoriously complicated market, which makes knowledge and understanding central to protection advice, especially as every insurer is different.”
What are the most common consumer objections that you have helped them overcome?
“Misinformation still sticks to the industry and it is surprising how many assumptions about employer and state support are made. Some people are simply not aware how long and painful a state claims process can be compared to a good value, comprehensive protection plan. I often ask clients how reliable they believe insurers to be and many assume it to be around the 50% mark, as opposed to the real figure which is normally above 90% reliability.”
“Sometimes clients just don’t know about protection at all so it is important to bring it up as soon as you can, letting them understand the benefits. More importantly, let them hear or see the real life scenarios that would leave them in a difficult situation, helping to break through the “it won’t happen to me” stance.”
Is it just as important to share stories between advisers and within the industry?
“Absolutely. It isn’t just about raising awareness and talking to clients, it is also about spreading the word and sharing stories between advisers within the industry or network. Whether through social media or face to face networking, I find that stories genuinely affect those I speak to. At networking events I enjoy standing up and speaking about protection, with profound effects on others who come up to me afterwards.
“Attending seminars and events featuring providers is an excellent way to build knowledge around protection, whilst staying up to date with all the latest innovations and changes. If you don’t believe in what you are selling, then clients will pick up on it and be put off. I use CI Expert as well, which is a very useful tool to compare and contrast policies and to talk about protection with clients, helping to find the right “fit” for their circumstances.”
Do enough advisers embrace protection?
“Many advisers really engage protection and are seeing positive results. But unfortunately there are some that are not as interested. I think this is a worrying trend considering the importance of Treating Customers Fairly. Even Business Protection is not considered enough which can be devastating for the parties involved when not discussed properly.
“Some of it is simply about confidence. If they do not feel they know the insurers and products well enough they might feel they cannot provide the best advice for their clients on the subject. But I believe advisers also have a responsibility to understand the industry and ensure the conversation is fully incorporated into advice. As some advisers simply don’t know how best to talk about protection, I do what I can to spread the word, share advice and most importantly share protection stories where I can.”
If you would like to know more about how to join our award-winning Mortgage Network as an appointed representative or becoming a member of our Mortgage Club, call our Broker Support Team on 0845 130 7446, option 1.