Figures from TMA show total sales of GI increased by 11% in the first quarter of 2011 and upon further evaluation it is suggested that just under three quarters of this increase has been driven by intermediaries referring business through TMA to GI sales specialists.
Phil Whitehouse, head of TMA, commented: “These are interesting figures. The increase in GI sales is not a huge one but what is interesting is that more members appear to be making the decision to refer GI enquiries rather than source and place the deals themselves.
“There may be a number of reasons for this. Not all DAs have the time or inclination to actually sell GI and as such referral services can provide a good alternative. There are also the regulatory responsibilities to take into account as a good, professional specialist acting in this area will incorporate full control of these by supplying the required `Statement of Needs` and `IDD` directly to customers with all administration being completed in-house including the issuing of policy schedules. A third component in this process is the rise in profile and performance of such firms who can offer intermediaries competitive levels of referral commission and provide peace of mind in terms of non-cross selling guarantees.
“Of course it’s still up to the individual firm to decide which route they take. What is clear is that the GI market remains full of potential and whichever avenue they take intermediaries should ensure clients are getting the right amount of cover from the best available deal whilst opening up a valuable extra income stream for themselves.
"However, as with any opportunity within the marketplace it is vital for intermediaries to choose their strategic partner wisely by doing sufficient due diligence on them before referring any of their valuable client base.”
