More headlines of ‘useless loan insurance’ talking about consumers being ‘ripped off by overpriced and inadequate PPI’ abounded.
No doubt this latest round of negative publicity caused many brokers to throw up their hands in despair.
PPI is never at the top of consumers’ list of things to buy when they take out a mortgage and many will have struck it off entirely following this weekend’s coverage.
Their appetite for cover isn’t helped by the inaccuracies in much of the reporting, stating that they would probably have to wait six months before they can start to receive any benefit and cannot claim for common ailments, such as backache.
Rather than turn their back on PPI, however, I would urge brokers to continue to bring the value of appropriate cover to the front of customers’ minds.
The FSA itself has stated on numerous occasions that a suitably tailored mortgage payment protection insurance (MPPI) policy can provide valuable protection for consumers – and therein lies the key.
Companies need to give brokers access to policies that can be tailored to the individual needs of their individual customers. If they’re self-employed, then the broker can provide them cover for accident and sickness.
If their customer enjoys generous sickness benefits from their employer, then the broker can arrange back to day one cover for unemployment after a 30-day wait period, while providing them with sickness and accident cover to kick in after their employee benefit period concludes.
And if brokers aren’t sure about their sales process and regulatory obligations, then companies must provide extensive training and support to help them deliver a compliant sale every time.
Arranging appropriate cover doesn’t have to be hard for the broker or expensive for the client. Brokers simply need to select their provider wisely and choose one that is there to help them deliver a policy that their customer can claim against.
Given today’s uncertain economic climate and the duty of care brokers owe their customers, how can they walk away from this valuable insurance that can mean the difference between a customer keeping a roof over their heads in times of trouble?
Paul Thompson
Managing director
Assurant Solutions Intermediary
