An army of 11,000 mortgage brokers have been commanded by their industry association to grab a slice of the wealth protection market.
According to the MFAA’s Home Finance Index, a national survey of 1,423 people across Australia shows cross-selling presents an untapped opportunity for mortgage brokers, with only 31.2% of respondents being offered life insurance when they took out a home loan.
The conversion rates among those offered insurances shows there is a strong opportunity for cross-selling according to the MFAA – with 34.1% taking up home protection insurance when it was offered, for example.
With nearly 11,000 MFAA mortgage brokers, there is a large market to challenge risk-focused financial advisers.
“The survey shows that mortgage brokers continue to enjoy a huge opportunity in cross-selling insurance products, with both young and mature borrowers showing they are open to opportunities to protect themselves,” said CEO of the MFAA, Phil Naylor.
Commonwealth Bank Executive General Manager, Third Party and Mobile Banking, Kathy Cummings said CommBank encourages brokers to cross-sell non-home loan products.
“We have developed the CONNECT Referral Program which rewards brokers for the successful sales and referrals of a range of financial products including insurances,” said Cummings.
“Through CONNECT brokers can protect their customers’ assets and lifestyle by recommending them to specialist providers of financial, insurance and risk products.”
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