Mortgage intermediaries have been criticised for their "inadequate ability" to sell protection insurance to clients.
Michael Ward, managing director at insurance website Direct Life, said the firm had twice conducted mystery shopping exercises and found advisers were “woefully inadequate at matching the right protection product to the right protection need”.
Speaking at the Mortgage Business Expo in Manchester, Ward said many advisers would find it difficult to stand their recommendations up in the face of a complaint to the Financial Ombudsman Service.
Ward accepted some of the protection policy applications posed awkward questions, which made it difficult for advisers. However, he said it was the responsibility of intermediaries to make the sales process as easy and painless as possible by speaking in plain terms and explaining the risks that clients faced openly.
He also urged advisers to move away from a reliance on the cheapest and easiest sales and take a more holistic approach to protection.
“It is all there to play for and protection is an excellent tool. Intermediaries must be more inventive,” he said.IFAonline
£300bn of liabilities
View from the front row
Transfer from occupational scheme
Appointed by FCA and PSR boards