IFAs should consider partnering with specialist private medical insurance (PMI) brokers if they want...
IFAs should consider partnering with specialist private medical insurance (PMI) brokers if they want to keep a firm hold on clients, according to BCWA.
Speaking at a seminar session at the COVER Protection Forum, Howard Hughes, sales and marketing manager at BCWA, told delegates that forming partnerships could help widen IFAs' client bases and provide existing customers with a better service. However, he stressed that it would not make advisers millionaires over night.
"What effect will adding PMI sales to an IFA's portfolio have? Will it make you rich? No. Will it increase your income? Probably, yes. Will it help you retain clients? Positively yes.
"One of the hardest things is to find new customers. With PMI partnerships, IFAs are given access to a whole new bank of clients," said Hughes.
Hughes predicted that following the introduction of Financial Services Authority (FSA) regulation in 2005, some PMI specialists would be looking for a compliance umbrella. He added that a weighty benefit of a partnership approach for IFAs would be the reduced chance of clients being poached. Hughes also outlined the opportunities for advisers in corporate sales. He said small to medium sized enterprises (SMEs) were the best route into the PMI market.
"The large corporate market is saturated and the individual mar- ket is unlikely to grow," he said. The benefits of PMI for SMEs were also outlined during the session. Hughes told delegates cover provides an essential tool in sickness absence management and acts as a powerful recruit- ment and retention aid.
