Berry cited recent figures for those mortgages, sold by advisers, that have no GI sale alongside them. He said of 70,000 mortgages sold each month by intermediaries only one in four sold a GI policy with it – this, he said, meant 52,500 missed GI opportunities each month, which would mean £3.7m of potential monthly income being lost.
Berry also highlighted a potential regulatory issue for those advisers who were choosing not to advise on protection or GI, especially if a need had been highlighted in their factfind.
He said: “If there is a need identified by the factfind, and the adviser is not acting on this then there could be a regulatory issue. Advisers who are effectively not using their permissions, might be asked whether they really need those permissions. There is also a duty of care and customer outcome perspective to consider – please don’t ignore the wants and needs of the customer. Make sure you deliver the advice. If you’re not going to provide the advice, then make sure you refer.”
Berry said that a major benefit for advisers in offering GI advice and sales was the recurring income that could be generated. He said that at the start of every year, firms could effectively pay for their office costs, their PI insurance, and other fixed costs through their recurring income generated by ongoing GI sales.
