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ISCOVER
Staff Reporter
Cross-selling represents an untapped opportunity for mortgage brokers, according to a new national survey.
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The Commonwealth Bank of Australia/MFAA’s Home Finance Index found only half of brokers cross-sell other products to clients including home loan protection insurance and life insurance.
Of the 1,423 respondents polled for the Index, just 52.8 per cent said they currently offered home loan protection insurance, while 48.2 per cent said they offer home contents insurance and just 31.2 per cent offer life insurance.
Yet, of those who offered insurance products to their clients, the majority managed to achieve a conversion ratio greater than 30 per cent.
MFAA chief executive Phil Naylor said with conversion ratios like that, it was clear that brokers who offered additional products could significantly increase their profitability.
“The survey shows that mortgage brokers continue to enjoy a huge opportunity in cross-selling insurance products, with both young and mature borrowers showing they are open to opportunities to protect themselves,” Mr Naylor said.
Commonwealth Bank executive general manager, third party and mobile banking, Kathy Cummings said CommBank encourages brokers to cross sell non home loan products.
“We have developed the CONNECT Referral Program which rewards brokers for the successful sales and referrals of a range of financial products including insurances. Through CONNECT brokers can protect their customers’ assets and lifestyle by recommending them to specialist providers of financial, insurance and risk products,” she said.
