Brokers who let a client go through a mortgage transaction without talking about protection are not doing their job properly, according to Legal and General’s head of intermediary development Richard Kateley.
Speaking at Legal & General’s Mortgage Club live conference yesterday (5 October), Mr Kateley said despite the huge technological advances of recent years, brokers remained an essential part of the advice process and needed to ensure people were aware of protection products.
He said: “The heart of what we do still sits at that client relationship, whether we do it face-to-face or through Skype”.
Mr Kateley pointed out that the mortgage industry was being transformed by technology such as Apple’s Alexa, which can guide people through the first stages of buying a home via the internet.
And he said the protection process was also being revolutionised by innovations such as retinal scans, which provide the most accurate means of obtaining information about a person’s health.
But despite these new technologies and product innovations, he said most people still relied on brokers to provide advice – and talking about protection was an essential part of the intermediary’s role.
Mr Kateley said many people remained uninsured, and that other sources of funding such as savings, the state, crowdfunding and the Bank of Mum and Dad did not provide a realistic alternative to protection products.
He said: “For me, everyone that we talk to has a need for some protection.
“The connected generation wants to do business with human beings that use technology. Technology is not going to replace us, but how do we fulfil the duty of care?
“If I don’t at least mention life insurance, then [the client] can sue us.”
He advised brokers to ensure borrowers sign a disclaimer if they do not want life insurance, adding “we live in a litigious age”.
simon.allin@ft.com
