Mortgage Force – National Conference

1. Mortgage Force – National Conference 8 May 2009

2. first4cover - 10 months from launch • 86 franchisees have sold a B&C policy through first4cover • Over 2,000 B&C quotes and 700 ASU quotes have been completed • Of all Mortgage Force mortgage sales around: 20% include a B&C policy 14% include an ASU policy But: • 20 franchisees have not sold a single B&C policy • Our national network average for ASU sales is around 20% • The missed commission opportunity from mortgage sales totals around £250,000

3. Why General Insurance • Your clients have never needed quality, affordable B&C and ASU cover more • It has never been easier for you to sell General Insurance • Income from General Insurance has never been more valuable to your business

4. Your clients have never needed quality, affordable B&C and ASU cover more

5. Recent news stories During the last recession, between May 1990 and March 1992, there was a spike in the number of domestic burglaries Redundancies for the three months to February 2009 totalled 270,000, up 45,000 over the quarter and 162,000 over the year, the highest figure since comparable records began in 1995 69,700 reported burglaries during the third quarter of 2007 - up 4% on the same period in 2007 Repossessions have hit a 12-year high with homebuyers losing 40,000 properties in 2008 - forecasts from home loan firms point to at least 75,000 repossessions in 2009 The number of unemployed people increased by 177,000 over the last quarter and by 486,000 over the year, to reach 2.10 million

6. . March 2008 Feb 2008 Summer 2007

7. Why your clients need B&C Cover • With unfortunate occurrences threatening homes and their contents, not having insurance leaves people open to serious financial loss The average rebuild cost of a three bedroom semi is £100k The average contents sum insured for the same property is £40k • In the UK, one in three of us will get burgled at some point in our lives 25% of households are not protected by any form of home insurance

8. Why your clients need ASU Cover • Unfortunately people do get sick, have accidents and get made unemployed • 1 in 53 mortgages are in arrears of 3 months or more (and this figure is rising) • 144 properties were repossessed every day during the 3 months to the end of September 2008 (estimated at 205 a day during 2009) • Less than 50% of the population have 2 months salary or more tucked away in savings • Unemployment now at 2.10 million – its highest since 1997 • Citizen Advice Bureau will deal with 7,421 new debt problems every day • Limited Government assistance

9. Treating Customers Fairly • Many buyers, particularly first-timers, are not aware of the insurance products offered alongside a mortgage • If a mortgage is being sold customers should be made aware of the possible implications on that mortgage if they became sick, had an accident, were made redundant or suffered damage to their home or its contents • Buyers often do not consider the need for ASU or take out an expensive, possibly unsuitable policy from their lender It is your responsibility to ensure your client has all the relevant information to assess whether a policy is right for them

10. It has never been easier for you to sell General Insurance

11. Fast, easy to use system • Once you have entered your customer details first4cover allows you to get a guaranteed quote for: - B&C with 10 questions and 7 declarations - ASU after just 6 questions and 5 declarations • If you do a quote for one product you can use the same customer details for the other - there’s no rekeying required

12. Clear client need • Whose job is safe in the current climate? • How would your client pay for their mortgage if they were made redundant or were unable to work? • How would your client pay for damage to their property or its contents? • Does your client want to pay over-the-odds by taking insurance cover from their lender? • Does your client want to protect what is likely to be their most valuable asset? • Does you client want peace of mind?

13. Simple, quality products B&C • Up to £500,000 buildings cover as standard • Variable contents and personal items cover levels to meet the client’s needs • Standard cover includes damage caused by flood, storm, fire, smoke and theft • Low standard excesses (with options to increase if the customer would like a cheaper premium) • 0% interest on direct debits • Money, credit card and pedal cycle cover automatically included with personal items

14. Simple, quality products ASU • Some of the most competitive MPPI products available to intermediaries • Wide range of flexible product options • Cover for self-employed and contract workers (fixed term contract) • Option to increase monthly benefit by 50% to cover additional household expenses • £2,000 maximum monthly benefit • Initial exclusion period for unemployment waived for customers switching to first4cover from another MPPI policy • ASU available to new and existing borrowers • Free Back to Work Support • Just a few simple eligibility questions to apply for cover

15. Income from General Insurance has never been more valuable to your business

16. first4cover Commissions You earn commission of: for the lifetime of the policy • In addition you earn £7.50 for each FLP and HEC product sale you complete and earn this again every time the policy renews

17. If you sell… • 1 B&C policy and 1 ASU policy per week • 10% annual growth • With average retention • 40% add-on penetration

18. Commission earnings over 5 years

19. How can you achieve this? • Quote B&C and ASU to every single client - if you’re quoting one product it only takes a minute to quote the other ….and don’t wait until the end to discuss insurance • Review your back book - you know when a client’s B&C renewal is due - call them, ask them their renewal premium and see if you can beat it on first4cover (if they took insurance through the lender this is very likely) - contact those clients who did not take out ASU cover initially, they may now be interested • Make use of first4cover marketing support - contact us to discuss any campaigns you might be planning - order marketing leaflets free of charge

20. Maximise income per customer B&C • Always suggest the two additional products – Home Emergency and Family Legal • Up-sell Personal Items cover • Offer extended accidental damage cover on Buildings and on Contents MPPI • MPPI needs to be sold – customers don’t usually shop around • Offer to cover your customer’s other household expenses (up to 50%) • Don’t walk away from a sale – use the flexible product options • Some protection is better than none

21. Conclusion • Your clients have never needed quality, affordable B&C and ASU cover more - Unemployment and repossessions are rising - Not having either B&C or ASU cover can leave clients open to financial ruin • It has never been easier for you to sell General Insurance - Simple, quick quote engine - Straightforward, good value and quality products • Income from General Insurance has never been more valuable to your business - GI can give a stable recurring income to your business - You could earn over £60,000 over the next 5 years