Never in the field of insurance has such bad publicity been given to such a sensible product.
The fact that banks and loan providers cannot sell payment protection insurance at the point of providing other facilities such as mortgages etc is in theory good for the insurance broker.
An insurance broker (like us) provide mortgage protection insurance for our customers and can include income protection insurance for people who have other monthly commitments (or even if they haven't).
We offer our products online but if asked will assess customers' needs and make a recommendation as to the suitability of the product. However other financial institutions, lured by greed for the higher commissions they could obtain, sold the policy without such checks - and the result is that there is now a large market developing of solicitors offering their services to claim back mis-sold products. The new ruling is an attempt to prevent the excesses that the protection (aptly named) insurance industry have undertaken.
The product is a good product providing protection against loss of income due to accident, sickness and redundancy and thus protecting customers against having their home reposessed should they lose their job.
The question now arises. Will customers taking out a mortgage not bother with the product, just buy the option offered by the mortgage lender or bother to contact a local insurance broker and get better cover for half the price.
Time will tell.
For more information contact JB Portwood john.portwood#portwood.co.uk