Mortgage protection insurer Australian Life Insurance (ALI) has revealed a substantial upswing in broker originated policy sales which it accredits to the impact of slowing residential markets and reduced broker commissions.
Over the last 12 months the group has reported a 61 per cent increase in the number of active brokers. Policies sold has also risen by 58 per cent.
Brian Pillemer, ALI’s head of distribution, believes there is a direct correlation between current tough market conditions and broker swing towards cross selling mortgage protection insurance.
“Brokers are doing it tough right now and there’s no doubt that many have seen their incomes drop over the last year,” he said. “Cross selling insurance is not a new concept but it is only now that we’re really seeing it gather momentum.”
The insurer reported the largest growth in activity over the past six months in NSW with brokers selling 46 per cent more policies than in the previous period. QLD was also up by 28 per cent, followed by 21 per cent growth in WA.
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