The policy is being offered through CETA’s 16,000-strong network of independent insurance and mortgage brokers.
CETA has been working with Cardiff Pinnacle for a number of months to design the product. It has also been created to address the recent criticisms of payment protection insurance (PPI).
The policy delivers various ‘back to work’ support initiatives, which can include text messaging, CV writing assistance, Jobseeker and Health guides, a support website and face-to-face employment workshops run in conjunction with a professional outplacement consultant and 1:1 follow-up sessions.
The product is particularly aimed at younger borrowers and first-time buyers who are often the customers in most need of safeguarding their mortgage repayments.
CETA managing director David Quick said: "Much of the concern about MPPI stems from the fact that it was sold in a simplistic way with cost as the prime consideration which led to many people buying the wrong policy and then finding their claims have been refused.
“Our policy is benefits rather than costs led. After scouring the market for a suitable partner, we chose Cardif Pinnacle because of their expertise in creditor insurance and they also have a high claims payout ratio. But its main strength is that it has an enviable track record of helping people get back in to work following illness or unemployment.
“Most importantly it will give our members the confidence to move back in to the MPPI market and allow them to meet the needs of customers who want peace of mind that their mortgage will be paid if they become ill or lose their jobs.”
Richard Embley, Cardif Pinnacle’s national mortgage intermediary manager, added: ”It was clear CETA wanted to confront the criticism of MPPI policies head-on and were looking for a product which would support the principle of ‘Treating Customers Fairly’.
“This is an important launch for Cardif Pinnacle and supports its continued growth in the mortgage intermediary market. CETA is the ideal partner because they share or focus on great service backed up by excellent technology.”
