We reduce our MPPI rates by 20%

08/09/2011, 09:00 by Dee Ireland, Marketing Executive

Select & Protect have announced a 20% reduction in rates for their Mortgage Payment Protection Insurance (MPPI) product. The reduced rates, which came into effect on Thursday 1st September apply to the Accident, Sickness and Unemployment (ASU) and Accident and Sickness (AS) options of the policy.

The GI provider also published an MPPI Claims Statistics document which highlights that 85% of all claims submitted to date for the product have paid out. The report goes on to show the full list of reasons for the 15% of claims declined, all of which are clearly against the terms of the policy, such as pre-existing conditions or claims being made during the deferment period.

Bruce Reid, Managing Director for Select & Protect, said: “Our MPPI product underwritten by First Assist was launched in 2009 at the onset of the current recession in response to provider retrenchment and restrictions on some of the product coverage. Fast forward two years and recent reports such as those from the Office of National Statistics highlight the concerning figures about unemployment rates and the number of people out of work due to an accident or sickness. We believe that MPPI cover really is important for homeowners to protect their mortgage payments and related bills and to continue to support their family and lifestyle if the worst happens.”

Reid continues: “The price of the product is always a factor when financial intermediaries are advising their clients but so too is confidence around the product being fit for purpose – in other words paying out on valid claims. So we’re delighted that at the same time as being able to reduce the rates for the ASU and AS cover options without changing any aspects of the cover or service offered, we’re also confident the claims process for valid claims is delivering on the insurance promise. We also recognise that with everything going on in the news right now regarding PPI, brokers may be reluctant to speak to their clients about MPPI so we hope the claims statistics report is a reminder to brokers and their customers that MPPI should not be associated with the current negativity around PPI. It’s a different product and as our statistics show, as long as the claim is valid, it does pay out.”

Select & Protect also continue to offer an Unemployment only option.

www.select-protect.co.uk/products/mppi