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Should we stop using 'broker' when referring to insurance advisers?

Journalist: Amy Loddington, Protection Reporter, Financial Reporter, Property Reporter

ended 28. February 2023

Mortgage advice business owner, coach and author Gary Das recently shared his thoughts about the use of the term ‘broker’ to refer to financial advisers on LinkedIn, citing concerns about the consumer perception of the role of an adviser.

He said:

"While brokers are often seen as middlemen who are solely focused on making  a profit, advisers provide a more holistic approach. […] Using the term ‘adviser’ instead of ‘broker’, we can shift the conversation around our industry and the services we provide. […] [Adviser] conveys a sense of trustworthiness and credibility which is essential for building strong relationships with our clients. It's time to retire the term ‘broker’ and embrace the more accurate and positive term ‘adviser’"."

Do you agree?

Do you refer to yourself as a mortgage or protection ‘broker’ or ‘adviser'? Does this vary depending on whether you're talking to your peers or to clients?

Do you think the term ‘broker' has negative connotations?

 

11 responses from the Newspage community

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Rob Peters
Principal at Simple Fast Mortgage
I've never used the word broker to refer to myself or the service my company provides. The word 'broker' (or 'intermediary') indicates someone who works purely on a transactional basis at a product level without providing personal advice or looking at the wider client situation. Online comparison websites are brokers. Execution-only / non-advice-based services are brokers. Qualified financial professionals, be it for pensions, investments, or mortgages, etc are not brokers. They are advisers or consultants.

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Emma Jones
Managing Director at Whenthebanksaysno.co.uk
The term varies depending on whom I am talking to, lenders refer to us as brokers and customers tend to use mortgage advisors. The issue with our reputation is due to poor advice in the industry. We spend time fixing other people's advice so regardless of title the focus needs to be on competencies and attitude towards clients.
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Kylie-Ann Gatecliffe
Director at KAG Financial
Most jobs have slightly different job titles available for use. As long as you are a great one - in my eyes the title doesn't matter. Clients see us as their person to help with their mortgage and protection. As long as you are giving them fantastic service and putting them at the heart of everything you do - I don't think your title matters. Not once have I ever heard a client frown upon the term broker - this may just be my experience but I believe if you have a great reputation, excel at customer service there is nothing to worry about when it comes to what you call yourself.
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Dave Corbett
Head Of Protection at Protection 1st
I don’t think most clients care, nor do I think there are negative connotations around the word ‘broker’.

To me a good mortgage professional ‘brokers’ a deal with a lender representative. Whereas an ‘adviser’ makes me think of someone wearing a headset and reading from a script.

But I reiterate I don’t think the end client cares and this is the mortgage industry naval gazing and losing sight of way more important matters like the overriding service proposition of the business the adviser/broker sits in.
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Anil Mistry
Director and Mortgage Broker at RNR Mortgage Solutions
In the financial services industry, language matters. When it comes to mortgages, I am deliberate in my choice of terminology, which is why I prefer to use the term "Mortgage Broker" rather than "Mortgage Adviser." This is because the term "Mortgage Adviser" is commonly used by direct lenders for their advisers, who are typically limited to offering products from a single financial institution. In contrast, "Mortgage Broker" connotes a wider selection of mortgage products and lenders, and more competitive rates, giving clients the assurance that they are getting the best possible mortgage solution for their needs.
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Rhys Schofield
Brand Director at Peak Mortgages and Protection
Absolutely because it tackles this total misconception that all people care about with protection is price because as soon as you scratch below the surface it turns out that people are very happy to pay a little bit more for better quality cover. It's even in my opening introduction to my appointments- "I'm not a meerkat, I'm a proper award-winning adviser that helps you take care of your family properly because when the time comes they won't care that your policy was a few quid a month cheaper"
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Scott Taylor-Barr
Principal Adviser at Barnsdale Financial Management
This is a question I have wrestled with over the years quite a bit (I know, I know, I'm thrilling at dinner parties) and have flipped between being a broker and being an adviser; both in terms of mortgages and insurance. There are pros and cons to both; broker does infer a middleman of some sort, but also someone who works with a wide cross-section of providers, not just one or two. On the other side of that the name adviser does give the impression of a more trusted source of information and guidance, but at the same time fails to immediately answer the question of market accessibility - for example, many bank staff will be "mortgage advisers" and of course only able to talk about their employer's products.
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Joshua Gerstler
Chartered Financial Planner at The Orchard Practice
"I agree. When you hear the term 'broker' it conjures up images of someone in a cheap, creased suit, with their tie not done up properly trying to sell you something. It also implies that someone is trying to get you the lowest price on something so that they can sell you a product. For some individuals, paying the lowest possible price is what they want and need and so a 'broker' is right for them. However, most people do need an 'adviser' to guide them, hold their hands and help them make sensible financial decisions based on what is going to provide them with the best value."
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Mark Stallard
Director and Advisor at House and Holiday Home Mortgages
A broker does deals. An advisor advises.

It’s about helping each person individually.

Have you ever tried on a tailored suit? I have. Once. It was the best suit I ever owned. That’s the difference between making something for the person in front of you, and just throwing any old thing their way to get the ‘deal’ done.
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Austyn Johnson
Founder at Mortgages For Actors
Yes. Brokers broke, Advisers Advise. We offer financial advice, so why call yourself a broker?! Start to spend the time advising and not just looking for the bottom rate.
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Paul Neal
Mortgages & Equity Release Advisor at First Choice Financial Services

“Tomato” “tomato” everybody seems to be obsessed with titles. I’ve seen ranging from broker advisor through a mortgage specialist in housebuying experts the torch doesn’t matter the proof is in the pudding