One of the web’s leading protection providers has confirmed its plan to establish partnerships with mortgage brokers to make it quicker and easier for borrowers to safeguard themselves from future financial issues.
In a recent interview with FTAdviser, Anorak’s co-founder and chief executive officer, David Vanek, explained his intention to begin selling protection with mortgage broker support, with further announcements on the specifics of these collaborations coming soon.
“We can either be their protection service, so they refer to us as their protection clients on our online journey,” he said. “But some [mortgage brokers] have expressed a keen interest in using our digital platform for their own benefit and their protection team,”
“So a mortgage broker will use Anorak on a fully white-label basis to help their advisers and their clients get the right protection.”
Anorak is an established and reputable online protection provider that offers independent expert advice on critical illness coverage, income protection, and life insurance. All of these are considered essential for prospective borrowers applying for a mortgage and similar long-term secured loans.
After answering questions on employment status, smoker status, and additional lifestyle factors, customers are provided with a series of quotations and coverage options available.
Speaking on behalf of Anorak, Mr. Vanek stated that the current protection market was “very dated” and needed to be significantly modernised in order to help borrowers access the advice they need on the various forms of financial protection available.
“Most of the distribution partners we are discussing with, whether they are banks or a digital platform, what they want now is an online-first touchpoint with a digital platform that can help the client go quite far before someone needs to pick up the phone and talk to them,” he said.
He also emphasised the importance of providing every customer with fully independent advice and personalised quotations, rather than the generic advice typically provided via online channels, prior to telephone calls or in-person meetings taking place.
“We are passionate about advice, and we think that everyone should get access to advice online first and be educated about what type of protection they need,” he said.
“It doesn’t mean that because it’s online, it’s online-only. I think we still see and value human expertise, but it should be online first.”
The announcement from Anorak closely follows a warning issued by an independent protection expert panel concerning the inadequacies and inefficiencies of the current customer buying experience as far as insurance and financial protection products are concerned.