We heard a few weeks ago that BMO is considering selling mortgages through insurance brokers.
From the looks of it, it seems that approved insurance agents will basically be referring potential mortgage customers to BMO, without doing much else.
A BMO spokesperson told us, “To maintain our commitment to our brand promise of clarity, any plans will ensure that BMO remains in control of product underwriting and pricing.”
BMO says there is no “specific launch date” for the start of mortgage distribution through insurance brokers, and it will make an announcement at a later time.
When asked if BMO would ever consider re-entering the mortgage broker channel, its spokesperson said: “BMO exited the mortgage brokerage channel a few years ago and remains committed to using our BMO mortgage specialists to offer the best advice and solutions.”
At this time BMO does not have (to the best or my knowledge) a General insurance Channel. But the definitely have a Life CI and Disability Product line and any insurance agent who has these sources of revenue should think twice about sending a client into a BMO branch. There is a potential to loose a few clients to the branch. Wonder how they are going to confirm that there is a “hands off policy”?
I thought banks could not cross-sell insurance in the branches because of the Bank Act. No?