Burgess refutes claims of mortgage payment protection insurance sales slump
MONEY MARKETING - 29TH MARCH 2007
British Insurance managing director Simon Burgess rejects suggestions that the mortgage payment protection insurance market is crumbling.
He says sales at British Insurance have doubled in the past 12 months, with the broker now selling around 300 policies a day.
Some product providers have suggested there has been an mortgage payment protection insurance sales slump following the move by the Competition Commission last year to ask the Office of Fair Trading to probe the sector over poor quality products and high-pressure sales tactics.
Paymentshield sales and marketing director Chris Traynor says the indication from his firm's agents is that it is harder to sell mortgage payment protection insurance than 12-15 months ago.
He says: "The market has slowed and there are three ways to address that. There needs to be a clear distinction between payment protection insurance and mortgage payment protection insurance. The industry needs to be more co-ordinated in presenting itself to the OFT and Competition Commission. It also needs to adapt products to reflect the change in people's commercial lifestyles.
"Products have been static so if one partner needs accident, sickness and unemployment but the other does not as they have income protection through their job, products need to cater for that and be unbundled."
Burgess says: "The market is not down. Consumers are wising up and not buying second-rate products."
