P&C brokerages are increasingly hiring brokers with life insurance licenses according to Aline Barker, Rogers Insurance’s life and financial services account manager.
That’s because brokers know making everything available in one place is what customers demand and whereas mortgage, life and accident coverages are grouped, P&C stands in its own category.
“Most brokerages that offer home and auto coverage or commercial coverage, up until recently, did not have someone within their organization that was life licensed,” Barker said. “A lot of the time they would refer that business out, or they would leave it up to the client to figure it out on their own.
“I believe more people are seeing the benefit of being able to offer those policies to their clients. It simplifies it for the client because their home and auto and everything is in one spot with one brokerage.”
One option P&C brokerages could expend to, with the right people, is the mortgage and life bundle. Barker sells mortgage insurance directly to the homebuyer, without going through the banks. It’s a business she says is as busy as ever whereas insurance companies who offer coverage to mortgage lenders have taken a hit because of stricter stress testing rules for purchases with lower downpayments. Barker says the mortgage insurance she sells isn’t affected because her clients have already been vetted by the banks, but haven’t bought the bank’s policy.
“Any brokerage that has someone that is life licensed and accident and sickness licensed, can write mortgage insurance.” Barker said.
“With the coverage we (Rogers Insurance) offer, the client is the owner of the policy, whereas with the coverage that is typically sold through banks, the lender is the owner of the policy. With our coverage the client gets to pick the beneficiary, the policy is convertible, which means they can switch for another type of life insurance policy. They can keep it if they move lenders. The biggest thing is the client is totally in control of that policy.”
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