07 SPRING PROTECT NEWSLETTER Review commission and switching controls • Audit your switching cases to ensure each one has a clear consumer benefit. • Reassess adviser incentives and ensure they avoid bias toward high commission products. Review distribution arrangements • Ensure panel arrangements do not inadvertently limit consumer choice. Enhance consumer education • Provide clearer explanations of claims processes, exclusions and product differences. • For mortgage firms, embed protection prompts at every suitable client milestone. GI Enhancements to add commercial value to firms There has long been a debate between Mortgage firms and Lenders on the proc fees payable on Product Transfers (PTs). On average, a firm can expect to receive a third of what they would on a New or Remortgage, which can typically be £200 less or so. “Bridging the Income Gap” has been a conundrum for a while especially where the existing Lender rate is so competitive. Paradigm firms can now help to add income to a transaction by getting double indemnity commission on Paymentshield’s GI Policy, effectively earning two year commission up front, and then benefitting again in Year 3 and subsequent years. This can be on both self-written or referral businesss, and with their current referral completions sitting at c.50%, this adds even more certainty to the income opportunity. Please refer to Marc our Protection & GI Support Advisor on marc@ paradigm.co.uk for further details. Events Finally, if I can give a shout out to our upcoming events this year which I know are a source of great information from what we have fed back. Have a look at the schedule here, and we hope you can join us for some of them! Yet again, thanks for your continued support of Paradigm Protect; we value our partnership and our no loaded premium Whole of Market proposition, which not only supports the view of the FCA, but gives your clients the best choice of Providers at the best possible premiums for them. As always, we are working to develop the proposition and to broaden the products and services and to maintain our marketleading offering to you.
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