Don't overlook the MPPI opportunity

18 January 2010

The mortgage payment protection insurance sector took a blow with last year’s decision by the Financial Services Authority to order firms to remit to policyholders premium rises.

This put insurers on a sticky wicket and compounded the effect of the sustained media onslaught on the wider PPI sector.

The insurance industry has not been immune from the effects of the downturn and the MPPI sector has suffered more than most, with the hike in unemployment leading to a sharp rise in claims.

But the product has always been a vital tool in brokers’ arsenals and, more importantly, a crucial bulwark for clients.

It is vital that the broking community does not dismiss this cover when it comes to deciding how best to protect their clients’ biggest investments should they become unable to work due to accident, sickness or unemployment.

The insurance is more relevant than ever as we struggle through choppy economic waters, with more redundancies looming.

At the same time the insurance sector will be reflecting on how we underwrite our policies to shape them to the evolving needs of customers.
It may be that we need to devise more bespoke polices and remodel the underwriting process.

In the meantime it is vital that brokers do not turn their backs on this valuable insurance just when their clients are most in need of the peace of mind it brings and its financial benefits should the worst happen.

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