Simon Biddle, head of marketing and communications at Infinity, told Mortgage Introducer that a solution is needed to the problem of dwindling sales in MPPI. But Biddle admitted his suggestions for compulsory cover might cause controversy.
He explained: “As an industry we have to get the sales up for MPPI. Figures are showing the take-up of MPPI is low, and with the FSA’s Insurance Code of Business (ICOB) putting more regulatory pressure on the industry, the point of sale broker has enough to do.
“The fact is something has to be done to solve this problem. Of course, it is about customer choice. But we are not writing the levels of MPPI sales that we should be, and this is one solution. Otherwise, do we wait and still talk about the problem and what to do in five or 10 years time?”
The sale of MPPI has come to the forefront of the industry recently, with commentators believing customers should shop around to get the best deal. Rachel McKay, mortgage analyst at Moneyfacts.co.uk, commented: “Consumers need to be made aware that shopping around for MPPI cover, either direct or via their IFA, is an avenue that is well worth exploring.”
John Whitehead, managing director of Key Software, said compulsory MPPI is ‘absolute nonsense’. He said: “The solution is better education about MPPI and clarification from the FSA about what the right approach is.”
