Insurers may refuse to renew PPI, warns Burgesses

Natalie Holt
10-Oct-2008
A leading insurance distributor has warned that many insurers may refuse to renew payment protection insurance if unemployment figures rise.
Sara-Ann Burgess, director of PPI provider Burgesses, says that with redundancies likely there is a risk that some insurers will look to change the terms of their monthly cover.

She says: “Monthly premiums in the PPI market have helped give customers the flexibility they need. But if underwriters now refuse to offer cover to those they feel may be at risk or introduce huge leaps in premium, then consumers are going to be left high and dry.”

Burgess is urging providers to steer away from refusing cover for employees facing redundancy.

She adds: “The industry has been on the receiving end of some critical press in recent years and should now be working harder than ever to demonstrate that customers’ needs are at the heart of what it does.”