Crisis highlights value of mortgage payment protection insurance
MORTGAGE DISTRIBUTOR - 1ST SEPTEMBER 2007
In treating mortgage payment protection insurance as nothing more than a cash cow, providers have ignored its true value as a risk management tool that can protect both borrowers and lenders from the problems created by accident, sickness and unemployment.
Mortgage defaults in the US have gone through the roof and in recent weeks figures have highlighted the growing number of arrears, repossessions and bankruptcies occurring in the UK.
Of course mortgage payment protection insurance would not have been able to prevent all of these, but many of the people facing problems in today’s tighter financial climate have been unable to meet financial commitments because of the very things which mortgage payment protection insurance is there to protect.
The focus should be on providing good value low margin protection products which will protect both borrowers and lenders and provide significant revenues when sold in large volumes.
Simon Burgess
Managing director
British Insurance
