General Insurance (GI) provider Paymentshield is predicting a surge in the number of mortgage adviser firms appointing a GI specialist next year.
Paymentshield believes the significant rise will be due to intermediaries struggling to keep up with the growing demand in mortgage processing while also wanting to future-proof their businesses before the end of the stamp duty holiday.
A general insurance specialist is a dedicated employee responsible for the sales and administration of general insurance, enabling firms to maximise sales opportunities and create an additional revenue stream.
Data released from consultancy TwentyCi revealed that the number of homes placed on the market in July, August and September 2020 had increased by 36% and year-on-year sales were up by 53%.
Over half (54%) of attendees at Paymentshield’s Changing World conference said that general insurance had become a more important source of income to their business as a result of the economic instability caused by Covid-19.
Emma Green, head of intermediary sales at Paymentshield, says: “More and more advisers have come to realise that incorporating a GI specialist into the business pays for itself, especially in today’s volatile marketplace.”
“Maximising the GI opportunity provides advisers with another, more dependable revenue stream which both supports regrowth now and protects adviser businesses from future financial uncertainty.”
She adds: “The financial pressures on mortgage advisers is also only set to increase with the FCA’s proposed 66% price hike in application fees. In the face of these changes, GI remains a resilient source of income.”