Industry
Sales of life and protection products could receive a significant boost as a result of the stance being taken by the major mortgage networks.
Zurich Mortgage Network (ZMN), which recently announced its options for mortgage advisers, has said it wants to see growth in both mortgage and life business.
Richard Coulson, director at ZMN, said Zurich is already originating over £15bn of annual lending and expects this figure to grow dramatically, both ahead of and following mortgage regulation on 31 October 2004.
He said: "We expect to see a commensurate increase in protection sales. We do not just want mortgage business; we want life business. Advisers' business must fit our model, otherwise we will suggest they look elsewhere."
Legal and General's (L&G) new mortgage network, has also announced it will operate a sole supplier relationship for advisers for term assurance, critical illness (CI) and mortgage payment protection insurance (MPPI).
Graham Newitt, director of intermediary solutions at L&G, said: "We already have a large number of firms that use L&G for life assurance on an exclusive basis who need to work out what to do because of regulation."
Peter Hamilton, head of protection marketing at Friends Provident, agreed that its network, Friends Mortgage World was also likely to see more protection sales. "Mortgages and protection go very well together," he said.
