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Brokers upbeat on protection sales

By 15th May 2024Blog, Mortgages

65% of PRIMIS brokers have seen an increase in demand for protection sales over the last 12 months, reflecting home-owners’ growing demand to protect their homes. 

Mortgage network PRIMIS surveyed over 150 specialist protection appointed representatives across the UK and found that a further 73 per cent of brokers expect demand to increase further over the coming 12 months. Brokers in the South and the Midlands reported the most positive growth in demand over the previous 12 months.

Claire Madge, Sales Director at PRIMIS, said: “Rising mortgage costs and general uncertainty about rates and payments have meant our brokers have seen a significant increase in the demand for protection cover.

“Our advisers are at the sharp end when it comes to how their customers are feeling about their finances.

“With so much uncertainty about rates and mortgage payments, protection sales are rightly an increasingly common part of customer dialogue.”

The Bank of England kept the base rate on hold at 5.25 per cent at its May meeting, but its governor Andrew Bailey has indicated that a cut could be on the cards later in the year.

Madge said: “In an unclear interest rate environment, homeowners are really thinking about protecting their futures.

“The pressure on household finances over the past three years continues to weigh on homeowners.

“Broker firms will have to become more holistic and operate a full service model so they can better insulate from market shocks, and insurances will help protect firms from future claims against foreseeable harm.

“With the Consumer Duty rules on new products bedded in and extending to include existing products and services from the end of July, brokers are even more mindful of ensuring good outcomes for their customers, and this includes the right level of protection cover.”

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