Capital Bank: Lender launches insurance
sales service for dealers

 

Motor finance lender Capital Bank has called on dealers not to
overlook the potential income stream they can receive from sales of
insurance at the point of sale, and is launching a new service to
help dealers sell insurance as part of a finance package.

Go deeper with GlobalData

Data Insights

The gold standard of business intelligence.

Find out more

Access deeper industry intelligence

Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.

Find out more

 Capital Bank has developed a new service whereby the bank’s
dealer partners can pass on point of sale customers to the Capital
Bank Income Plus team, who will contact the customer, either by
telephone or by post, and discuss their insurance
requirements.

The service allows even dealers who are not FSA-registered to offer
insurance to their customers via Income Plus, the bank said.

A recent trial of the scheme in association with the Marshall Motor
Group in Cambridgeshire, Bedfordshire and Suffolk had delivered
“excellent results”, Capital Bank reported. Penetration of other
products also grew, and point of sale income was doubled.

Fears over the regulations surrounding insurance sales have put
many dealers off the process of selling insurance, said senior
director Paul Jordan, with the Financial Services Authority
investigation into the selling of payment protection insurance
particularly damaging to dealer confidence.

“Many dealers are still not taking advantage of potentially
lucrative insurance income streams, and due to recent regulatory
changes, many retailers feel that selling PPI and Gap products has
become even more difficult and laden with risk,” Jordan said.

Capital Bank recently launched Remote Business Manager (see Motor
Finance May 07), a scheme which pays dealers commission for passing
on finance customers.