Managing director of Pink, Tony Jones, said intermediaries had also been affected by the extra time it was taking to conduct mortgage interviews with clients.
He said: “The drop in volumes and the affects of regulation have put extra pressure on the average broker’s business. The obvious solution is for them to use the time they are spending with clients to offer solutions to any insurance requirements they might have.
“Not only does this satisfy the broker’s regulatory requirements but it also offers them a possible income stream. It will also mean customers are more likely to return if they require additional financial services.”
Jones said Pink was currently offering six months of free subscription to the insurance quotation system, The Exchange.
It is offering to deal with referred insurance business from brokers to ensure they still receive income from the sale of insurance.
Richard Griffiths, managing director of Network Data, agreed with Jones. He said: “Arranging insurance stops your client going to someone else and doing it.
“Some brokers turn their noses up if they are only going to make £50 a year commission from a policy. But if you consider that the average policy could last five years then it is the equivalent to turning away £250.”
Andrew Goodwin, owner of Cheshire-based AMG Financial Services, commented: “Many people are stretching themselves to the limit with their mortgages at the moment so it is important the broker ensures their clients are properly covered in case things go wrong.”
