Business protection demand increasing among customers

January 12, 2020 by Brendan O'Neill

Borrowers

New figures released by the insurance provider VitalityLife reveal that the number of requests for business protection to be included in mortgage deals has risen sharply during the last half decade.

According to these figures, 24% of mortgage advisors who have clients in the business world have experienced an increase in the numbers asking for business protection during that time. These advisors are attributing the rise to the fact that business owners are far more conscious of how important this can be now, as well as to an increase in the amount of both self-employed people and those running small or medium-sized firms.

A third factor that is thought to have contributed to the rise is the legislative change that made business protection products less of a tax burden for companies. One of Penguin Wealth’s advisors, Craig Palfrey, stated that the increase was excellent news, especially given that both insurers and mortgage advisors sometimes neglected to raise the subject of business protection.

This argument was supported by the report, which showed that 14% of the mortgage advisors surveyed had experienced a drop in the number of conversations about business protection during the same period. The blame for this is being placed on a client book that needs to be updated, but VitalityLife also found that an astonishing 46% of these advisors did not have protection insurance for their own businesses.

This shows the importance of proper CeMAP mortgage advisor training, as this course ensures advisors have the depth of knowledge to cover all necessary subjects.