You are here: Home - News -

Base line specification should be on agenda

by:
  • 07/10/2002
  • 0
The base line specification for mortgage payment protection insurance (MPPI) needs urgent revision, ...

The base line specification for mortgage payment protection insurance (MPPI) needs urgent revision, according to Steve Devine, director of corporate communications at Pinnacle Insurance.

Speaking at The Mortgage Event in Bolton, he said that within the context of sustainable home ownership, MPPI has a poor image when it comes to value for money.

He said it is seen as a crude and limited measure by many advisers and has had little or no advertising aimed at the public.

Devine proposed that: ‘A more financially-aware borrower could possibly have the minimum base line specification taken away, thus allowing a more tailored package.’

He added that there was a chance regulation by the FSA and forthcoming insurance directives from Brussels could increase the cost of distribution and force some insurers out of the market.

The base line specification for MPPI was launched in 1999 by the Council of Mortgage Lenders (CML) and the Association of British Insurers (ABI). It was intended to improve transparency and simplicity of MPPI, so borr-owers can understand what protection they are being offered and how insurance can benefit them.

The two organisations still meet regularly to discuss improving the way in which MPPI is sold, to set targets for MPPI and monitor progress.

However, Bernard Clarke, communications manager for the CML, said: ‘We have regular meetings with the ABI as part of the sustainable home ownership initiative. But I am not aware the base line specification was on the agenda, and I am not aware of any plans to change it.’


Tags

There are 0 Comment(s)

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
Crown Equity Release applies for SHIP membership

Crown Equity Release has applied for membership of Safe Home Income Plans (SHIP), the body whose acc...

Close