Welcome to this month’s Industry Roundup, bringing you up to speed with industry insights, regulatory updates, and the latest TMA news.
As summer fades and the school year begins, I hope you had a chance to unwind, recharge, and prepare for the final quarter ahead!
Despite some uncertainties surrounding the upcoming ‘Halloween’ budget announcement at the end of October, and rising gas prices affecting ONS data and affordability, it’s crucial to focus on the positive outlook and the opportunities ahead. We are approaching a significant surge in the PT market expected in October, as indicated by the CACI data below. While there are challenges with PT rates not being fully integrated into sourcing systems, this period presents a valuable opportunity. Are you prepared to seize it?
How are the SONIA SWAPS reacting? Rates are steadily declining and for the first time in a while, we’re seeing lenders provide rates that start with a 3! With the next base rate announcement due to be released on the 19th of September, track the SONIA SWAPS on the TMA website. Are we expecting to see a further cut? The current 2-year rate at 3.980%, and a 5-year rate at 3.609%. Track the SWAPS here.
PARAGON SHARE SOME POSITIVE INSIGHT…
The Summer edition of Paragon’s Mortgage Intermediary Insight Report highlights how brokers are notably more optimistic about the outlook ahead. Confidence in the prospects for the mortgage industry has seen the biggest uplift, increasing from 70% of brokers expressing some degree of confidence in Winter to 89% this wave. Are you feeling confident? Access the full report here.
PURE PROTECTION PRODUCTS…
The FCA recently announced a market study it intends to launch during the financial year 2024/25 on Pure Protection products. The aim will be to understand whether the market is functioning well, and if customers are receiving good outcomes. The review will focus on ‘fair value’, to understand the impact of elements such as commissions and loaded premiums, guaranteed acceptance of certain age groups and subsequent lower payouts, as well as the health of competition in the market. Feedback should be provided by 11 October. If you need help working out how best your firm can do this, we’re here to help. Reach out to your dedicated Key Account Manager.
DISCUSS INCOME PROTECTION WITH CONFIDENCE…
In support of IPAW, Aviva has introduced a series of webinars dedicated to Income Protection. These sessions are designed to enhance your understanding and support you with your client conversations. Click here to learn more.
REGULATORY UPDATES…
The FCA has been busy reviewing the insurance market revealing that insurers and advice firms still fall short on delivering good outcomes and fair value, we’re expecting to see more actions here. The FCA have also been reviewing the outcome of the annual assessment, you can view their 1 year on webinar here.
Is your annual review ready for inspection, should the FCA ask to review it?
HAVE YOUR SAY…
Take advantage of this opportunity to recognise the outstanding achievements of your firm, our partners, individuals, and teams. Feel empowered to put yourself forward for an award category that showcases the exceptional work of your organisation. #TMAAWARDS2024
Have you secured your spot at the upcoming TMA conference on the 28th of November? Don’t miss out on the chance to network, acquire valuable knowledge, and engage with panel debates. I’m looking forward to seeing many of you there!
Get in touch with our dedicated Broker Support Team on 0330 303 0236 if you have a query or need some advice.
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