Release new business opportunities


	Insurance Marketing Department

In today’s challenging markets, what is needed is clear, targeted thinking about where the best sales opportunities can be found. Equity Release might be the answer for some..

The Opportunity
It’s an old adage, but true; when the going gets tough, the tough get going. Today’s economic climate is far from stable, with war in the middle

east, stock markets not at all sure whether they wish to continue their two year decline, or bounce back and general concern that the housing market has overheated – again – and that we are in for a period of slow growth at the very best; possibly even a return to the negative equity scenario of the 1990s.

Financial advisers may well find themselves faced with clients who are nervous about the future and unhappy with the performance of existing investments. So what can be done today, to ensure that client relationships are maintained?

Many of those clients who are already retired must be concerned that their investment income is falling, either as the result of low interest rates, or because dividends are reducing, as companies are making smaller profits and have to retrench. Yet a large number of these clients will be sitting on – or more appropriately in – an asset that is worth many times what they paid for it; their home.

Of course, in the 1990s, Equity Release plans had a deservedly poor reputation, but those lenders subscribing to the Safe Home Income Plan (SHIP) rules, offer a range of products that provide far better protection than previously. Norwich Union has just drawn attention to its guarantee, common amongst SHIP providers; that its customers can never effectively get into negative equity (click here for details of the SHIP guarantees).

But how can this help you in practice? Do you have clients for whom this is suitable and, if so how can you reach them?

The answer to the first question is probably “yes” and to the second, “by following a few simple steps”.

There are five steps to identify and reach potential Equity Release clients.

Briefly trawl through your client records for those who are aged over 70, and are home owners, and those in their 50’s for whose parents this might be appropriate. Concern over the loss of your children’s inheritance is one of the main inhibitors to using Equity Release. If the suggestion comes from your children in the first place, it is far more likely to be listened to.
Prepare a simple letter – ideally with a case study and bullet points on the need and solution – that you can send to the clients identified. There will probably be two versions, depending on which audience you wish to approach. Insurance Marketing Department can help you with this, especially as there are particular considerations for literature sent to older recipients.
Follow up with a telephone call, to make sure they understood the content and to reassure them about the SHIP guarantees – not least of which is that their solicitor has to sign off the arrangement, confirming that it is fully understood by all parties.
Arrange a meeting with the client and his or her potential beneficiaries, to discuss the various types of plan.
Make the arrangements.

It is also worth considering working beyond your own client base, through solicitor contacts and even more generalised marketing activities.

Whatever you decide, Insurance Marketing Department can help you. Please click here to contact us.