Leading mortgage protection insurer Australian Life Insurance (ALI) has revealed a substantial upswing in broker originated policy sales as diversification gathers pace in the wake of the credit crisis, slowing residential markets and reduced broker commissions.

Over the last 12 months the group has reported a 61 per cent increase in the number of active brokers. Policies sold have also risen by 58 per cent.

Brian Pillemer, ALI’s head of distribution, believes there is a direct correlation between current tough market conditions and the push to cross sell mortgage protection insurance.

“Brokers are doing it tough right now and there’s no doubt that many have seen their incomes drop over the last year,” he said. “Cross selling insurance is not a new concept but it is only now that we’re really seeing it gather momentum.”

NSW has seen the largest growth in activity over the past six months with brokers selling 46 per cent more policies than in the previous period.

QLD was also up by 28 per cent followed by 21 per cent growth in WA.

To meet surging broker demand ALI has strengthened its team in recent months with particular focus on its on-the-ground sales force.

Key appointments over August and September have included Dino Pesce and Alex Di Toro as Regional Managers, Chris Straw as BDM in NSW/ACT and the promotion of Dale Leaver-Keith to Regional Manager in SA/NT.

Pillemer believes the significant consumer need for mortgage protection combined with the simplicity of introducing insurance as a cross sell have played a major role in boosting its appeal amongst brokers.

“There are various options for diversification but there’s no doubt that mortgage protection insurance is one of the most straight-forward,” Mr Pillemer said.

“Every homeowner with a mortgage should be given the opportunity to obtain mortgage protection insurance and brokers are perfectly positioned to provide this cover at the time of arranging their mortgage.”

According to Mr Pillemer, brokers seeking to strengthen revenue through alternative streams should consider the ease in which they can add mortgage protection insurance to their product suite.

“We’ve tailored our product to make it simple for brokers to undertake the application process at the same time that they’re arranging their clients’ mortgages,” he said.

“An additional 10 minutes spent with a client to organise their mortgage protection insurance at the end of the loan process can quickly translate into increased revenue while also helping protect clients against the unforeseen.”