75% of BoI customers buy mortgage protection from Bank of Ireland

Discussion in 'The Fair Mortgage Rates Campaign' started by Brendan Burgess, Feb 15, 2017.

  1. Brendan Burgess

    Brendan Burgess Founder

    I attach an extract from the Bank of Ireland presentation of their results for the year ended 31 December 2015.


    I find this astonishing.

    Is BoI such good value that 75% of their customers will get the best deal from Bank of Ireland Life?

    I presume that they don't have 75% of the mortgage protection market?

    I wonder if permanent tsb had the same cross-selling success?

    And 55% take out general insurance. Why would it be lower? Is it because BoI are acting as a broker?

    Or is it easier to understand general insurance and so shop around?

  2. SBarrett

    SBarrett Frequent Poster

    Ever see the ad for house insurance where the couple question taking out the cover? It's all tons of paperwork and blah, blah, blah. People are so bamboozled with paperwork that they just sign up whatever is put in front of them.

    Back in the Celtic Tiger, if I was competing against a bank for mortgage protection cover, I would always lose, even if I was cheaper. They felt the bank were doing them a huge favour to get them the mortgage and they didn't want to disappoint the sales man by going elsewhere for cover. Now it's the opposite, they give the banks as little as possible. But they are the people who talk to a financial advisor, there are thousands who go directly to their bank/insurance company...

    I doubt they get the best deal from the bank. Banks usually try to upsell life cover, selling level cover instead of decreasing, putting on specified illness too.

    Merowig likes this.
  3. John Locke

    John Locke Registered User

    Hi Brendan,
    I got a mortgage with BOI just over a year ago. I priced life and house cover separately and BoI matched the best prices I found.
    I went with them for convenience.
    So, while it is probably often down to laziness, it can be because of competitive offerings.

    That said, my house insurance renewal arrived with a ~30% hike! I've now switched to another provider.
  4. peno

    peno Frequent Poster

    I had the exact same experience - easier, simple and same price as going with BOI at the start.
    They also ensure everything is in place on time - going outside for this needs a small amount of organisation that many people will be afraid of when the mortgage is the main thing they just want sorted.

    I have since moved both the house insurance and mortgage protection as I got better prices else where. Majority of people particularity on the life cover will just stay with BOI as its less transactional than the house cover which needs to be renewed each year.
  5. HouseHunter2016

    HouseHunter2016 Registered User

    Previously I just took the life assurance that was offered by the bank, I'd say it was laziness on my part as I didn't have to shop around and compare.

    Recently I took out a life assurance policy through a broker. I wanted to have it in place ahead of bidding on houses - I had concerns I might encounter delays or possibly a refusal in getting life assurance. I'm happy it's in place now and I can always assign it to a new mortgage in the (hopefully near!) future. The decreasing balance on the previous policy would have been insufficient to cover the potential new mortgage.
  6. MrEarl

    MrEarl Frequent Poster

    I would imagine that even today, the homeloan providers are making borrowers feel like they are doing them this massive favour by approving their loan and by extension, are applying indirect pressure (guilt, playing on the fear of timing etc.) on the borrowers to take other products and services from them.

    People need to be informed, then they can at least make educated decisions and realise whether they are getting good value or not.
  7. Brendan Burgess

    Brendan Burgess Founder

    I spoke to someone in BoI mortgages and they told me that their mortgage advisors use the comparison software available to brokers and identify the lowest cost, reducing balance mortgage protection product generally available on the market. They then match this price.

    So, in most cases, BoI customers are getting a very good deal.

    However, some discount brokers, e.g. LA Brokers have special deals which would usually be cheaper than the BoI product.

    I gather that LA Brokers have some BoI staff as clients, as their prices are cheaper than the BoI prices, even after the staff discount!

    MrEarl likes this.
  8. CiaranT

    CiaranT .

    Seconded. LA Brokers offered me a lower premium on life insurance than Irish Life via EBS despite Irish Life / EBS also having a comparison 'price matching' tool. These internal price matching tools do not match the entire market.
  9. SBarrett

    SBarrett Frequent Poster

    It's so difficult to get a mortgage these days, that people don't seem to be falling for that old chestnut anymore. At least, as not as much as before...
  10. riverrushes

    riverrushes New Member

    Last edited: Feb 21, 2017
    I have a bank of Ireland life policy that costs €47 a month. It is for 113,000 and has critical illness cover of 50,000. I requested an up to date policy from the bank. The policy makes reference to Balance managed fund of 484.913 units - a bid price of €2.65 and a value of €1,285.01. I have 75,000 outstanding on the mortgage. I want to switch the policy to a lower repayment. How do I go about this?

    What will happen to the €1,285.01 if I do switch? Is this money mine or the banks?
    Last edited: Feb 21, 2017
  11. Brendan Burgess

    Brendan Burgess Founder

    I see that they have launched online mortgage protection. I wonder if that shops around for the best price?


    24 January 2017
    Bank of Ireland has launched a fully digital application service for mortgage protection for the bank’s mortgage customers, the first bank in Ireland to offer an online application system. Customers can now apply through a fully digital and paperless process in less than ten minutes.

    The new online mortgage protection application is designed to be quick and user-friendly and customers can apply using PC, mobile or tablet. More than seven in ten Bank of Ireland customers are active online, with many using 24/7 online, mobile, and self-service channels. After customers purchase online mortgage protection they will be able to stay in touch with their policy online, mobile and through the Bank’s financial planning portal – Life online.

    Discussing the new online mortgage protection solution, Eamonn Corcoran, Bank Ireland Life said: “We have transformed how our customers can organise their mortgage protection, where they can now conduct the entire process online. User-friendly digital solutions help to deliver a quality customer experience and enable consumers to conduct their finances at a time and location that works for them. This new initiative is in response to customer feedback and we will continue to explore ways to deliver innovative services throughout our business.”

    The launch of the online mortgage protection service is part of Bank of Ireland’s ongoing strategy to simplify and digitise account opening, and it follows other ‘first to market’ developments including Skype mortgage advisors and the launch of a digital application service for Sole Trader current accounts.