Business protection market undersold by £1.1 trillion

The protection gap in the business protection market is £1.1trillion, and brokers are still not taking advantage of potential commissions they could earn by selling this product to clients, said Legal & General.
2 July, 2010

Clare Harrop, head of specialist protection at L&G, said yesterday at the Nationals Association of Finance Brokers’ annual conference in Birmingham, that 90% of businesses in the UK don't have any business protection in place, meaning there is a huge opportunity for brokers selling protection to help grow this market and earn commissions at the same time.

She outlined three types of business protection including key person loan protection, key person profit protection and shareholder or partnership protection.

Harrop went on to say that there is £300 billion of corporate debt not assured in the UK currently, and that 51% of businesses surveyed by L&G admitted they had corporate debt which was secured against personal assets, putting them at personal financial risk unnecessarily.

She called on brokers to help raise awareness among their corporate clients about the benefits of business protection, and said that on an average premium of £120 per month, brokers could earn a commission of £1296.

If a broker had five successful leads per month, Harrop said they would be looking at an annual income just shy of £80,000.

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