Insurers try to restore broker confidence in MPPI
Insurers have moved to reassure brokers that mortgage payment protection Insurance (MPPI) is still an option as the market sees changes to availability.
Changes in the UK economy have impacted nearly every factor insurers take into account when rating their products. In addition, the Association of British Insurers has revealed unemployment claims on MPPI are up 118% on the year. As such, many insurers are reviewing the areas of cover they offer.
In January Uinsure announced changes to the availability of its MPPI, including withdrawing the option for stand-alone MPPI. Uinsure will no longer sell MPPI more than 30 days after a new mortgage or remortgage has completed, there will be no re-solicitation of customers without MPPI, and no MPPI marketing campaigns.
Paymentshield has since implemented similar restrictions and announced a price increase of 20% for new and existing customers.
However, Kevin Paterson, sales and marketing director at Assurant Solutions Intermediary, said: "There are a number of high-profile firms taking a defensive stance at a time when this insurance is at its most needed. The market is tightening and brokers could be forgiven for thinking that the product was no longer available.
"However there are a number of insurers that have priced for risk and that still want business. These are insurers that did not seek to undercut the market and then pull out when the going got tough. There are still good quality MPPI and income protection products out there."
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