"With the rise in accidental damage claims due to people spending more time in their homes, we may even see an increase in the need for insurance."
We spoke to Lee Denton, sales director at The Source, about the firm's new three-year growth plan, how advisers can further close the protection gap, and why insurance commission is a vital income stream for all brokers.
FR: Tell us a bit about Source’s proposition and how it supports advisers.
Our aim is to be the go-to provider for brokers and advisers providing general insurance to their clients.
We host an easy to use platform, for whole of market policies from leading household names, to provide the right protection, whilst saving time and effort.
Source is also committed to supporting advisers through education, to ensure they remain compliant with CPD requirements and hone their soft-skills to enhance their service offering.
FR: Source recently launched a three-year growth plan – what does it entail and where would you like to be in three years’ time?
The main theme of our business strategy is growth. We aim to build upon the fantastic base we already have, by improving our technology, to streamline processes and systems, and make the journey smoother and simpler for staff and advisors, alike.
FR: How can advisers further close the protection gap?
As a broker, you have a duty of care to your clients, to work in their best interests.
I recently read that 68% of homeowners will admittedly manipulate their insurance application to get a cheaper quote. This attitude towards under-insurance amongst consumers is concerning.
Cheapest isn’t always best and we all have a responsibility to educate clients about their insurance options and requirements.
Where customers manipulate the information to make a quote cheaper, this could lead a provider not paying a claim due to non-disclosure. The work a broker undertakes to ensure a client is covered correctly is invaluable, from both the perspective of product features and the application process.
By educating your clients on the importance of accurate and adequate insurance, you can help to mitigate the risks of being unprotected.
FR: How can advisers utilise insurance to further increase their income?
Commission is a large part of any adviser’s income, so the more products you sell, the more you’ll earn. With Source, brokers don’t just earn commission for the policy, but for every year their customer renews with the panel, even if they retire or leave the industry.
I know of a broker who retired several years ago and is still earning a tidy sum annually, from trail commission. That’s a great incentive to promote GI to every customer!
FR: How will the Covid-19 pandemic continue to affect the protection market?
There were concerns about the housing market, but it was one of the most successful industries during the pandemic. People still need to protect their homes so it will always be a necessity.
With the rise in accidental damage claims due to people spending more time in their homes, we may even see an increase in the need for insurance.
FR: If you could see one headline about the insurance market in 2021, what would it be?
It’s already been written - The FCA's ban on price walking!
I think its great news for brokers and should end the race to the bottom on premiums that we've seen over the past decade. We should see a reduction in cheap products on the market that don't provide adequate cover and an increase in the advice led approach.