A broker now selling insurance to boost his product mix says it has also strengthened his hold on clients.
“Apart from generating additional revenue streams, diversification also promotes client retention,” Terry Kilakos, broker and owner of Verico North East Mortgages in Montreal, told MortgageBrokerNews.ca.
When Kilakos re-launched his brokerage earlier this year, he also made room for North East Insurance Financial Services, an in-house insurance agency hawking life, disability and whole life coverage.
North East Insurance is actually run out of a building some two blocks away, with Kilakos, who has now hired eight licensed insurance agents.
The leading broker is among a growing number of mortgage professionals who have begun offering their clients other financial products partly in reaction to the slowing home market.
“It’s always good to diversify and have an additional revenue stream,” said Kilakos.”But we also launched North East Insurance because of client demand.”
When clients come to his office, they often bring three questions – unrelated to mortgages -- with them.
• Where can they find a notary?
• Does KIlakos know a reputable home inspector?
• Where can they get life insurance?
“If we could offer clients the insurance they need in-house, there would be lesser danger of losing them to another business,” said Kilakos.
So far, client reaction has been positive and cross-selling activity has been encouraging, he told MortgageBrokerNews.ca
“Our mortgage clients often go to our insurance business and our insurance agents refer many clients to our mortgage firm,” said Kilakos.