Press Release

Regulation burden takes its toll

A new survey by Paymentshield, the largest independent supplier of mortgage related general insurance products to the intermediary sector, reveals that three quarters of intermediaries experienced a drop in sales of MPPI (Mortgage Payment Protection Insurance) during the second half of 2005.

Unsurprisingly four in ten (40%) intermediaries put the decrease in sales down to 'external market forces' such as a slow-down in the housing market. However, it seems regulation is also taking its toll, with 39% of intermediaries stating that they have less time left to actively sell MPPI products due to the impact of regulation.

Chris Traynor, Paymentshield Sales & Marketing Director comments: "Although we expect factors such as a slow-down in the housing market to impact on MPPI sales, it is worrying and disappointing that such a significant percentage of intermediaries believe that regulation is constraining their ability to advise clients on products such as MPPI.

"According to government targets , 55% of homeowners should have an MPPI policy, but the reality is that this target is not being met, with many consumers potentially losing out on this valuable cover. Ideally intermediaries should be able to advise their clients on this product seamlessly within the home-buying and remortgaging process regardless of whether it is their first or third home" adds Traynor.

Paymentshield is continuously reviewing its product offering and service with the needs of intermediaries in mind. It has recently re-launched its website which now includes easy to use navigation and tools as well as downloadable forms.

-ENDS-

Notes to Editor:

Paymentshield Limited is the largest independent supplier of general insurance products to the mortgage intermediary sector with current new business levels exceeding 25,000 policies a month. Paymentshield only sells through intermediaries and over 27,000 intermediaries have chosen Paymentshield.

For all further enquiries, please contact:

Fiona Kitchin
Head of Marketing
Tel - 0870 351 5878
Mobile - 07989 960 166
E-mail - fiona.kitchin@paymentshield.co.uk

Inez de Koning / Anna Schirmer
Lansons Communications
Tel - 0207 294 3623 / 0207 294 3605
E-mail - inezd@lansons.com / annas@lansons.com