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Jessica Darnbrough
Diversification isn’t just essential to the longevity of broker businesses, it also plays a key role in the broker proposition, one industry stakeholder has claimed.
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Speaking to The Adviser, Loan Market Group’s Mark De Martino said today’s broker is no longer a salesperson, but a financial adviser and, as such, they should be helping every client on their entire financial journey.
“When the third party distribution channel was first created, I think a lot of brokers felt like salespeople,” he said.
“Over time, we have come to realise we are not salespeople, we are advisers. We are adding value to our clients and their financial lives. We are advising them about their financial future.
“As a broker, if you take the attitude that it is your job to advise your client and steer them in the right direction, then you should be offering insurance as well.”
And while Mr Martino believes offering insurance should be part of the broker proposition, he also believes it is one of the easiest products to cross sell to clients.
“If you are making a first attempt at diversification – look no further than the client in front of you. I believe brokers have a moral responsibility to the client, especially under the new legislation, to ensure they are appropriately looked after. As such, it is not only easy, but also imperative that brokers offer insurance to their client,” he said.
“The contract is there in front of you, the client is there in front of you, you just have to ask the question.”
