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10 February 2011

Paymentshield is to boost the amount of upfront commission available to brokers by ten per cent. A new commission option – ‘Enhanced Indemnity’– has been developed to provide intermediaries with more immediately available cash to help them through current testing times. It will run in tandem with the insurer's existing commission options but means a broker can now earn even more over the first two years with Enhanced Indemnity offering 60% commission during this period. Paymentshield sales and marketing director James Watson said: “It's no secret that things continue to be tough in the mortgage sector at the moment with few first time buyers around and fewer sales and remortgages generally. “This falling away in core business has created a cash flow problem for some advisers. We recognised that the best way to help our broker base at this time is to put money directly into their pockets so they can best manage their businesses. We feel that by enhancing the commission offered on the sale of Paymentshield insurance products brokers switching to Enhanced Indemnity, which pays 45% upfront in year one and 15% from year two onwards, will be able to see a real difference to their bottom line straight away.” Watson believes that there has rarely been a better time to sell general insurance products. “Last year saw lenders withdrawing from offering customers PPI, leaving intermediaries with a real chance of making this lucrative space their own. This has never been more true thanks to a new generation of flexible income insurance product’s such as IncomeShield which enables customers to protect their income rather than just the payment on a mortgage or credit agreement. This means the monthly benefit in the event of accident, sickness or unemployment can be used to cover any outgoings the client chooses.” Paymentshield agents unsure about whether Enhanced Indemnity is right for them are invited to contact their Paymentshield 0845 0615 700 to review the commission options available to them. Directly Authorised firms will be able to switch to Enhanced Indemnity via the Paymentshield website www.paymentshield.co.uk/enhanced while Appointed Representatives should contact their network in the first instance to discuss their commission options. Watson added: “We are in this together and with mortgage lending continuing to show few signs of recovery in the short term, the hope is that brokers selling GI that switch to Paymentshield’s Enhanced Indemnity commission option will at least be able to bridge some of the upfront income gap in their business. We are also continuing to offer our Commission Buy Out scheme which can provide businesses with a quick and easy cash injection by turning their future commission stream into a cash lump sum. By switching to Enhanced Indemnity after a Commission Buy Out businesses can quickly re-build their GI income stream and then once their commission earnings from new business sales have been built back up to the threshold level, they can simply repeat the whole process again.” Ends

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