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CETA calls on insurers to re-establish value of MPPI

The insurance industry has a golden opportunity to reposition mortgage payment protection insurance as a valuable product, claims general insurance network CETA.

With unemployment on the rise CETA says the time is right for insurers to repair the tarnished reputation of MPPI, following mis-selling scandals involving banks and building societies.

But David Quick, managing director of CETA, also warns the public benefit of MPPI will be lost if providers continue to raise premiums in line with the number of claims.

He 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 for them to make underwriting margins as lean and mean as possible.

“They could also give some recognition to those who took out cover before the recession started, rather than apply across the board increases to old and new customers alike.”

Quick adds: “One encouraging sign is that there has been little evidence of insurers turning home owners away.

“I suspect that MPPI will increasingly prove a lifeline to many households so it’s important that the industry doesn’t emulate the banks and let down customers just when their need is greatest.”



The industry’s love-hate relationship with claims management firms has been highlighted in recent months as brokers have started to hit lenders where it hurts – in their pockets.

Pink sees record number of AR applications

Pink Home Loans received 62 appointed representative applications in March, an all time month-on-month record for the firm and an increase of 55% on February’s number.

Average house price slumps to 2006 level

House prices in England and Wales fell by 0.9% in March, taking them back to March 2006 levels, shows the latest data from Acadametrics.

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Pension freedoms: stop the scams

At the beginning of 2015, we highlighted that the new pension freedoms that come fully online on 6 April also represent a very attractive opportunity for the criminal fraternity to scam savers out of some, or all, of their accumulated retirement savings.


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