Stronger connections between protection specialists and mortgage distributors as a guard against troubled times
A month into his new role as director of distribution at Cirencester Friendly, Alan Waddington (pictured), has defined his key ambition: to generate a tighter relationship between protection and mortgages.
Waddington, who has been in the financial industry for over 20 years, believes that building relationships between protection specialists and mortgage distributors will be key to improving consumer outcomes during this difficult period – although he remains broadly optimist about the market outlook
“My scope as director of distribution covers a number of areas, such as all our networks, clients and generally understanding where Cirencester Friendly can work with all other moving parts of the industry,” said Waddington.
He said public relations, as well as the firm’s products and proposition, also fall under his remit, with his new position entailing that the income protection specialist meets Consumer Duty.
‘Everyone involved must be on the same page’
Waddington says he intends to focus on enhancing existing products, as well as bringing new offerings to the market, in order to help expand the toolkit for brokers.
Waddington, who previously held the role of director of intermediary distribution and partnerships at OneFamily, said he has begun his new role by reshaping the business development team. He said the team has now been aligned to work with its strategic partners and given more structure and direction.
Waddington said he has also increased the focus on in-depth strategic planning and further collaboration with the firm’s partner clubs, providers and distributors.
“It is important to avoid having any gaps within what you are selling. Everyone involved must be on the same page and fully understand the product and how it can apply to our specific partners,” he said.
Seeking the opportunity in market challenges
“Mortgage advisers are seeing deals falling through which is creating a drop in confidence, however we see this as an opportunity,” Waddington said.
With the cost-of-living crisis and higher rates putting a further strain on households, income protection is needed to ensure they do not encounter unpleasantness later down the line, said Waddington, adding that he sees this as an opportunity to work with brokers to encourage protection, and income protection in particular.
“Having safeguards in place is always important, but due to the current economic climate, this could not be more essential for borrowers,” Waddington said.
Income protection is important on many levels, he said. For example, renters having protection has a knock-on effect on landlords, as they often rely on that income to pay off their own expenses.
“This is why we believe advisers need to pair their landlord customers with income protection specialists, to help provide some certainty for their clients that they will be covered should disaster strike,” he said.
‘There will be a rebound’
Despite the uncertainty in the market, Waddington said he remains optimistic, and believes the second half of the year will see inflation fall.
Waddington believes demand will drive the market forward this year, and said he intends to use this period to build on relationships with mortgage specialists to tie protection and mortgages together for the future.
“People will need to move, whether that is through expanding families, marriage, divorce, or a variety of other reasons. As such, the market cannot stay dampened forever,” said Waddington. “There will be a rebound and I expect that to come later this year.”
How important do you believe protection will be over the course of 2023? Let us know in the comments below.
