how to maximise · 2020. 8. 14. · • if you’re a start-up this option is perfect if you have a...

HOW TO MAXIMISE

YOUR EARNINGS

contentsBrighten up your sales process 4 Try the 3 quote process 6

Tools to illuminate your GI conversation 7 Premium Flex 8 3 months payment holiday 9 Quick quote 10 Defaqto compare tool 11 CPD resources 12

Commission options 14 Enhanced indemnity 17 Double indemnity 18 Initial indemnity 19 Annual indemnity 20 Monthly commission 21 Retirement buyout 22

HOW TO MAXIMISE YOUR EARNINGS 2

Making the most of GI in your mortgage business can really boost your earnings. This ebook is here to give you a clearer view:

• What you can be doing to improve your GI sales and therefore your earnings.

• What your options are when it comes to commission so you can plan how to make the most out of your GI earnings, now and in the future.

3

step INTO THE LIGHT

BRIGHTENUP YOUR SALES PROCESS


QUOTE WITH EVERY CUSTOMER

It’s so important to offer a quote to every client you deal with (why? – because it’s good for you and good for your client). Earnings are important but ultimately you want to make sure you’re meeting your clients’ needs.

Your duty of care lies with them because you’re helping to secure their biggest investment. You also need to help them

keep it secure by giving them a quote for their home insurance. If you think like this for every one of your clients, it will become easier to build GI into your sales process. And the earnings will naturally follow.

KEEP IT SIMPLEThis is straightforward cover with no add-ons and excesses set to the industry standard of £150 for Contents and £250 for Buildings. This will provide a quote that is lower in price, however, it may not provide the cover they require or need with no added extras. Plus, the excesses might be more than they’d be happy to pay in the event of a claim

A LITTLE EXTRATweak the quote slightly, by adding on optional extras like Accidental Damage and Home Emergency Cover, and by dropping the excess to £100-£150. For a little extra on their premium, they’ll get more protection and won’t have to pay as much if they ever need to make a claim.

THE FULL SHEBANGFor the final quote, add everything on so they can see the most comprehensive cover available to them, again keep the excess low and manageable.

The beauty of this three-quote process is it gives them a choice and you’ll be able to discuss the benefits of each, matching the right level of cover to the individual.

6

TRY THE QUOTE PROCESSWhen having a conversation with your clients about GI, prepare these quotes ahead of your conversation to help save time.

illuminateYOUR GI CONVERSATIONS

TOOLS TO

Premium Flex is a tool designed to win price sensitive clients. If you’ve exhausted all options to win the business, but your client is particularly sensitive over the price, you can use Premium Flex to alter the level of commission you receive in order to achieve a premium your client is happy to pay and secure business you may not have otherwise won.

PREMIUM FLEX

THE DEFINITELYS = 3 casesThese clients are happy with the price. You earn:

£2,160PER YEAR1

NOT BAD AT ALL

the maybes = 7 casesThese clients are more price sensitive but some could be persuaded at the right price. You currently earn:

£0 OH NO!

AVERAGE 10 CASES PER MONTH

NOW LET'S FOCUS ON THE MAYBES

yes no

let's flex themFlex it for the 'maybes' and you could get another four clients, earning...

£1,728 PER YEAR2

Some clients may be too price sensitive but you don't know until you try

RESULT With the help of Premium Flex in this instance, you could've earned a total of

£3,888PER YEAR1&2

By not using Premium Flex and losing those clients, you would've earned

£2,160PER YEAR1

1Based on a monthly premium of £25.50 and a commission rate of 27.5% paid on Annual Indemnity commission basis 2Based on a monthly premium of £25.50 and a commission rate of 16.5% paid on Annual Indemnity commission basis DIAGRAM IS FOR ULLUSTRATION PURPOSES

3 months payment holiday

9

NEW

You can now defer your clients home insurance payments for the first 3 months of their policy. Our 3 month deferred payment option means the annual cost of the policy (including credit) is spread over the remaining 9 months.

You can offer this to any clients you know would be grateful for a break from these monthly payments. For example, first time buyers or home movers that have recently had to pay out a lot of moving expenses. It’s also a great conversation starter for your remortgage and product transfer clients. Being able to offer them a policy with nothing to pay for the first 3 months can help to compensate for any cancellation costs they might incur when switching from another provider.


GROW YOUR BUSINESS FROM YOUR CANCELLED CLIENTS 10

QUICK QUOTE

Don't forget Premium Flex if you want to make the price even more appealing.

Find out how the cost of a new Paymentshield policy stacks up against the client's current provider in a matter of seconds using the Quick Quote tool.

Before speaking with your client, try to make sure you've already had sight of their bank statements, or found out about their current home insurance details. That way, you'll already know how much they’re paying for their building and contents cover and how a Paymentshield policy compares. If a client has been with their current provider for 2-3 years or more, you should find we’re pretty competitive.

Help your clients see that all insurance isn’t made equal with the Defaqto Compare Tool.

We've partnered with Defaqto - the UK's leading independent financial research company - and made it easier to demonstrate the value of our 5 Star Rated Home Insurance. Try it out here: www.paymentshieldadvisers.co.uk/compare

DEFAQTO COMPARETOOL


Simply select which insurance providers/products you'd like to compare against Paymentshield

http://www.paymentshieldadvisers.co.uk/compare

To help light up your GI knowledge, we've highlighted our most thought- provoking resources for you to take a look at.

Whichever area you want to brush up on there’s something to support most knowledge gaps. From how to take on the comparison sites (and win!), through to, 7 ways to supercharge your remortgage sales or something in between, we've an ebook for you.

Whilst our industry whitepapers provide an insightful analysis of the key issues and challenges of the GI market. With more than 15 resources totalling over 7 hours of approximate reading time, you could prune a significant amount of time off your CPD requirement whilst gaining knowledge that could help support your business.


www.paymentshieldadvisers.co.uk/support

CPDRESOURCES

Name Policy name Premium Teelphone EmailRenewal date - 4 weeks

Mr A M Not covered

No frills gold £254 1414442222 [email protected] 01//03/2020

use the supportavailable to youIf you’re struggling with any aspect of selling general insurance, our team of over 20 business development managers are here to share best practice and help you every step of the way.

Get in touch today: 0345 0615 700


commissionOPTIONS

OPTIONS


The brilliant thing about GI is the fact it provides a reoccurring income stream. Check out the potential earnings calculator in Adviser Hub to see almost instantly what you could be earning.

Figures based on an average monthly buildings & contents premium of £25.50 (increasing by 10% per annum) with average annual attrition of 16% over five years on Annual Indemnity commission... the rest is the same.

potential commission earnings

Submit just 10 cases per month and earn over £97,000 over five years.£7,200

£13,853

£20,000

£25,680

£30,928

16

Make your commission work for you by using one of the following commission options to best suit your business.

make it work for you


Maximise the commission you earn over the first two years with enhanced indemnity, which pays 45% upfront in year one then converts to annual advances at 15% from year two onwards - that's 60% over the first two years1.

enhancedindemnity

1Based on a typical commission level of 27.5%. Where the six month deferred premium payment option is selected on MPPI cover, only 18 months commission (subject to a discounting factor) will be paid in month one.

• If you’re a start-up this option is perfect if you have a lot of outgoings whilst you get your business kitted out as it provides a good amount year 1 but you’ll still have income year 2 onwards

• To get you through a difficult financial time. For example, Covid-19

• If your firm is transferring from network to becoming Direct Authorised, as not all networks allow these options

WHEN YOU MIGHT CONSIDER THIS OPTION...


Maximise the commission you earn over the first two years with enhanced indemnity, which pays 45% upfront in year one then converts to annual advances at 15% from year two onwards - that's 60% over the first two years1.

doubleindemnity

1Based on a typical commission level of 27.5%. Where the six month deferred premium payment option is selected on MPPI cover, only 18 months commission (subject to a discounting factor) will be paid in month one

• If you’re a new firm or a firm transferring from a network to becoming Directly Authorised, as not all networks allow these options

• If you decide to take on a GI Specialist. This option can help you pay for the cost of the GI Specialist writing less policies, to start with, meaning less outlay

• When expanding your business in some way whether that be starting a new side of the business, additional admin or a bigger office. Double Indemnity can provide the boost income needed to make covering the increased overheads easier


YEAR EARNINGS UPFRONT EARNINGS

1 50% 50%

2 0% 0%

3 27.5% 27.5%


Pays you 12 months commission upfront followed by monthly payments after the first year.

initialindemnity

• To help with paying wages• For regular cashflow

through your business


YEAR EARNINGS

1 27.5% paid upfront in month 1

2 27.5% paid monthly in arrears

3 27.5% paid monthly in arrears


Pays you 12 months commission upfront followed by a further 12 months of commission on each anniversary of the policy.

ANNUALindemnity

• To help with paying wages• For regular cashflow

through your business

WHEN YOU MIGHTCONSIDER THIS OPTION...

YEAR EARNINGS UPFRONT EARNINGS

1 27.5% 55%

2 27.5% 0%

3 27.5% 27.5%


MONTHLY COMMISSIONMonthly Commission pays you a percentage for any monthly premium we receive, excluding IPT, charge for credit and the policy admin fee, where payable, in arrears in month 1, followed by further monthly payments in arrears.

It's easy to switch to Monthly Commission. Plus our other commission options remain available to you and you can switch back at any time.

If you're a well-established firm with no cash flow issues. This option can really help to minimise any clawbacks


You could:

• Sell your business or• Sell your customer book to another

professional intermediary

But this isn't always possible for everyone, so we've developed an easy and bespoke third option.

Retirement Buy-Out offers you benefits from your hard work with minimal hassle. We provide you with a cash lump-sum on retirement, in place of the future income from your existing portfolio of policies with Paymentshield.

We’ll make sure your Paymentshield clients are well taken care of by transferring their business to us.

We’ll handle the transfer for you, ensuring your clients are informed and the transfer goes smoothly - it's that straightforward!

22

RETIREMENTBUY OUT

Retirement Buy Out WHEN YOU DECIDE TO RETIRE, WHAT ARE YOUR OPTIONS?

INTERMEDIARY USE ONLY

Paymentshield and the Shield logo are registered trademarks of Paymentshield Limited (registered number 02728936) which is a company registered in England and Wales at Paymentshield House, Southport Business Park, Wight Moss Way, Southport, PR8 4HQ. Authorised and regulated by the Financial Conduct Authority. Telephone calls to Paymentshield may be recorded for training and quality. © Paymentshield Limited 2020 01688 08/20

thank youVisit the marketing toolkit section of our website to download

more tools to help you talk about general insurance every time:

paymentshieldadvisers.co.uk/toolkit

how to maximise · 2020. 8. 14. · • if you’re a start-up this option is perfect if you have a...

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