The reduced rates apply to the Accident, Sickness and Unemployment and Accident and Sickness options of the policy.
The General Insurance provider also published an MPPI Claims Statistics document which reveals 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 at Select & Protect, said: “We believe 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.
“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 rates for the ASU and AS cover options without changing any aspects of the cover or service offered.”
Reid added that S&P was also confident the claims process for valid claims is delivering on the insurance promise.
“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,” Reid said.
“It’s a different product and as our statistics show, as long as the claim is valid, it does pay out.”
