Specialist provider Paymentshield has increased the price of its mortgage payment protection insurance cover by an average of 20%. Increases apply to new and renewal business.
Cover is now only available when bought within 30 days of taking out a new mortgage or remortgage. It is turning away customers with existing home loans.
Unemployment cover is no longer available on its own; only as an option when bought with accident and sickness cover.
Underwriters Norwich Union, the largest provider of unemployment cover in the UK, is concerned about the rising number of employed.
James Watson of Paymentshield says, “As a responsible provider we need to ensure that the premium covers the risk. We have already seen some of our competitors increase rates in this sector and Norwich Union is altering rates across the market.”
The company does not sell direct, only through intermediaries.