While 40 per cent of brokers attributed the fall in sales to the general slow-down in the housing market, 39 per cent blamed regulation for not giving them enough time with clients to offer them a policy.
Chris Traynor, sales and marketing director at Paymentshield, has warned this inability to sell MPPI is damaging the client.
He said: “Although we expect factors such as a slow-down in the housing market to impact on MPPI sales, it is worrying and disappointing such a significant percentage of intermediaries believe regulation is constraining their ability to advise clients on products such as MPPI.”
“According to government targets, 55 per cent of homeowners should have an MPPI policy, but the reality is this target is not being met, with many consumers potentially losing out on this valuable cover. Intermediaries should be able to advise their clients on this product seamlessly within the home buying and remortgaging process, regardless whether it is their first or third home.”
However, Scott Flynn, senior marketing manager at Select & Protect, commented: “Rather than a slow-down in MPPI sales, we have seen a 100 per cent increase since August 2005, when we launched our age-rated policies. It’s fair to say the slow-down in the housing market has an intrinsic effect on any protection products sold with a mortgage but it’s surprising that regulation, having been in place for nearly all of 2005, is still seen as a barrier by some brokers.”
