This also means that members with existing Paymentshield policies will continue to receive their monthly commissions.
Network Data says this follows significant increases in term commissions and a rise in the number of products and providers available through its insurance panel.
The company will release a new version of its mortgageLink software in August which will meet all FSA requirements and include Paymentshield's Inertia system. A further version will be developed which will integrate this within the mortgageLink system before January 14 2005 – the start of insurance regulation.
mortgageLink will provide fully compliant insurance rules including production of 'demands and needs' statements.
Richard Griffiths, managing director of Network Data, says: “We are pleased to be dealing with a major insurance provider like Paymentshield, with its systems for electronic submission of proposals with same day on risk cover.
He adds: “We are committed to providing the best range of insurance providers and products.”
Network Data is also in discussions other major insurance providers to further boost its panel and says it will provide more information soon.
One Network Data member who wishes to remain anonymous says: “I am pleased about this agreement with Paymentshield. Network Data was under pressure to do this as it caters principally for small brokers and 99% of them use Paymentshield.”