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High premiums may hold back MPPI take-up

General insurance network CETA is warning that mortgage payment protection insurance may become unaffordable as premiums rise in line with the number of claims.

David Quick, managing director of CETA, says insurers should be looking to promote MPPI as unemployment levels soar. But instead, he says, some have hiked premiums by up to 40% in response to the high number of claims.

Quick says: “Insurers’ response is understandable as they can’t keep premiums artificially low while claims costs escalate. But it would benefit the industry’s image to make underwriting margins as lean and mean as possible.”

The warning over premiums comes as LV= looks to buck the trend by extending its offer on its mortgage and lifestyle protection product. This offers cover for mortgage and living expenses and allows clients to make unemployment claims within 60 days of taking out policies.

Chris McFarlane, head of protection at LV=, says: “The realities of the employment market and the economic climate mean it is vital to have the right protection in place.”


Regulator should take reckless brokers to court

I was shocked and appalled by the story I read recently on Mortgage Strategy Online about the Financial Services Authority banning a director of an adviser firm for reckless behaviour – encouraging clients to remortgage their properties to raise funds to invest (Mortgage Strategy Online April 6).

FSA bans and fines mortgage broker for fraud

The Financial Services Authority has banned a South London mortgage broker and fined him £100,000 for his knowing involvement in the submission of false mortgage applications.

Start courting overseas buyers

With the sun making a brief appearance lately, many people’s thoughts will be turning to what the Easter break has in store for them.

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The lucky ones

By Denise Wond, Marketing Relationship Manager, Royal London Do you consider yourself lucky? I don’t; I never seem to win a prize in the raffle, if there’s a cancelled train it’s usually the one I’m meant to be on and don’t start me on last year’s holiday. On the other hand, when I think about […]


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