Best Provider of mortgage payment protection insurance – British Insurance
MORTGAGE INTRODUCER - 12TH MAY 2007
“British Insurance is delighted it has been awarded the ultimate accolade – Best Mortgage Payment Protection Insurance Provider – by Mortgage Introducer readers.
Given that over 80 per cent of payment protection insurance polices are sold via high street banks and building societies – the very people responsible for so much mis-selling in this sector – it’s vital smaller players are recognised and rewarded for their quality products and competitive premiums.
It’s widely recognised that the mortgage payment protection insurance sector is suffering from a reputation crisis. The CAB and OFT have lambasted lenders for exploitation of their point of sale advantage and such is the concern over the low claims ratios, high commission rates, price differentiations and products variations that the Competition Commission is now investigating.
British Insurance is keen to salvage that reputation by promoting consumer choice. Those looking to purchase mortgage payment protection insurance need to be aware of their options – there are companies offering cover that’s four times cheaper than some of the high street providers. As property prices continue to increase, we’re in danger of a protection gap appearing, so it’s even more important that independent mortgage payment protection insurance providers stand their ground and offer enhanced quality products at cheaper prices to home buyers. Those with huge loans are extremely vulnerable, an accident or a period of sickness or unemployment can result in missed payments and if there’s no way in making these up, the consequences can be disastrous.
I believe the mortgage payment protection insurance distribution landscape is beginning to change. It’s all about mind set – we are beginning to change perceptions and consumers now realise they can shop around for cover in the same way they do their home, motor and travel insurance.
Although it’s estimated that direct sales occupy 1 per cent of the market, we are confident that by providing consumers with the best mortgage payment protection insurance deal, that figure will grow. Judging from this recent Award, it’s a view endorsed by Mortgage Introducer’s readers.”
