2006 looks bright for MPPI
The forecast for MPPI in 2006 is far from doom and gloom. Indeed there is a clear opportunity for intermediaries wishing to expand their customer offerings, increase customer loyalty and maximise their earning potential.
The opportunity lies in the fact that:
- While mortgages account for 85% of consumer borrowing, MPPI currently represents a mere 17% of consumer spend on PPI1
- Only 16% of mortgage borrowers have MPPI for both sickness and unemployment and often only one household member is covered2
- This hole in the market is all the more gaping when figures show that the number of unemployed people in the UK has risen to 1.42 million and 875,000 people are now claiming jobseekers allowance, a rise of 0.1% on the previous year3
- House prices and the number of households in mortgage arrears has risen and in Q3 2005, home repossession proceedings in England and Wales were up by 55% on Q3 20044
MPPI is a must for many mortgage borrowers and means that your customers can be confident that their biggest financial commitments are protected. In 2004 119,291 people in the UK saw the benefits when they successfully claimed on their MPPI policy.5
The Council of Mortgage Lenders encourages every borrower to take out MPPI and Paymentshield provides the products, tools and information for intermediaries to sell MPPI without any perceived hassle.
- Mortgage Strategy, September 19th Issue
- Office of the Deputy Prime Minister, Homeowners' Risk and Safety Nets 24th June 2005
- National Statistics, Labour Market Statistics October 2005
- Department of Constitutional Affairs 26th October 2005
- Association of British Insurers, Council of Mortgage Lenders Research