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.”