Burgesses drops IFAs on mortgage payment protection insurance
MONEY MARKETING - 2ND NOVEMBER 2002
Burgesses has stopped selling mortgage payment protection insurance through IFAs and tied agents to concentrate on direct online selling of mortgage payment protection insurance.
Burgesses, which worked with 2,000 tied agents and IFAs to sell mortgage payment protection insurance, blames soaring professional indemnity costs for the move.
But the company says it will maintain contact with a range of intermediaries to sell disability protection.
The provider is handing over responsibility for its intermediary base to Berkeley Alexander which is underwriting agency providing IFA support services.
Burgesses is also giving intermediaries the option of becoming an appointed agent of Berkeley to receive full compliance, training support, CPD programmes, PI and marketing initiatives.
Although brokers and IFAs will no longer be able to submit new business, Burgesses say existing agents will continue to be paid commission and will offer group and individual personal accident and illness insurance to a reduced intermediary base.
Burgesses managing director Simon Burgess says: “Berkeley Alexander currently provide excellent facilities to over 4,000 firms of brokers and IFAs and we believe with the forthcoming statutory requirements under the General Insurance Standards Council out intermediaries will require the support structure Berkeley Alexander is uniquely able to provide.”
