Mortgage Advice Bureau (MAB) have led the way in the last 12 months with some outstanding protection results despite the COVID-19 impact on the mortgage industry.
Our award-winning protection process which tracks every single mortgage and the protection review has meant that not only did we have less downturn than other mortgage firms but we also saw a far faster recovery (source iPipeline).
Some key highlights on performance are:
- 15% growth in protection sales when the industry growth is close to zero.
- 50% penetration on mortgage purchases.
- 27% of all protection is now income protection. We are now L&G’s largest IP distributor with over 10,000 L&G IP policies sold YTD.
- Average premiums are now close to £60 p/mth with over 60% of sales multi benefit addressing many more customer needs.
- Over 70% of all our critical illness is sold on an enhanced basis giving customers better coverage.
- We’ve increased the number of our protection specialists from 65 to over 90.
We rose to the challenge that COVID-19 presented by creating several initiatives that are now a permanent addition to how we work.
Some of the key propositional developments that didn’t exist before COVID-19 are:
- Customer Care Team (CCT)
- This team was created at the start of COVID-19 to contact customers and explain their mortgage options and also their protection options i.e. premium holidays. It provided greater peace of mind during a difficult time.
- Customer Centric Campaigns
- We highlighted all self-employed customers who purchased a mortgage in the previous 12 months that had no IP. Working with ipipeline, we developed bespoke emails highlighting the risks for that customer and indicative costs. The CCT then followed every email with a phone call and made appointments for the original adviser.
- Customer Cancelled Policy integration
- Recognising that some customers may cancel during this period we setup integrated missed Direct Debit responses from every provider and that information was distributed to every adviser enabling them to have conversations with every customer and re-enforce the benefits of their policy. This in turn reduced our overall lapses. Currently less than 6% in year one.
- Coaching Program – Route66
- A 12-week protection coaching program was launched and over 250 advisers have been through the programme. These advisers saw productivity rise by over 60%.
- MAB Protection Decision in Principle (DiP) Tool
- As providers have tightened up on underwriting, MAB launched a new DiP Tool which enables advisers to give the right price and correct indication of terms at outset.
- MAB Protection Apply & Administration
- As the mortgage lenders have changed criteria, the administration takes longer eating into adviser time. MAB has launched a protection apply and admin function helping advisers spend more time giving advice.
Our total commitment to the customer is evident in everything we do. Our protection strategy is not only to protect when the customer needs their mortgage but to also ensure any gaps are reduced with ongoing reviews.