MPPI with Paymentshield - Premiums increase

homeadvice_2

Fair to say, I think we have come at this from different angles. I do repect your opinion & thank you for your advice. I didn't get my information from the site posted I just used the tables for convenience. I did however get info from here:

http://ezinearticles.com/?Do-Not-Confuse-Income-Payment-Protection-With-Income-Protection-Insurance&id=1442008

and a number of other places, from IFA's articals etc. I have done a fair amount of research & the one thing that I'm beginning to realise is that different people call things by different names and standardisation is really required. Think you will see where I got Income Protection Insurance from & any confusion between that and IPP. Lets just put this behind us. I don't think either of us wanted to upset each other. Take care mate.
Cheers,
J.

OshayAway

homeadvice wrote: »

Fair to say, I think we have come at this from different angles. I do repect your opinion & thank you for your advice. I didn't get my information from the site posted I just used the tables for convenience. I did however get info from here:

http://ezinearticles.com/?Do-Not-Confuse-Income-Payment-Protection-With-Income-Protection-Insurance&id=1442008

and a number of other places, from IFA's articals etc. I have done a fair amount of research & the one thing that I'm beginning to realise is that different people call things by different names and standardisation is really required. Think you will see where I got Income Protection Insurance from & any confusion between that and IPP. Lets just put this behind us. I don't think either of us wanted to upset each other. Take care mate.
Cheers,
J.

Very True! Case in point: http://www.ftadviser.com/FTAdviser/Insurance/HealthcareAndProtection/MPPI/News/article/20090320/3baafba8-149a-11de-a6cb-00144f2af8e8/MoneySupermarket-admits-misguidance-over-protection.jsp

Eddie_George

Juebham wrote: »

Being a best buy I took out MPPI with paymentshield/British Insurance about 4 months ago, the premiums being around £29 for approx £1700 per month of cover. Today I've received a letter putting my monthly premiums up to around £57 for the same cover, with a note that after the first 12 months of my policy I would also be subject to an increased admin charge of £3.

The increase has been blamed on Norwich Union underwriters and the increased number of claims being made. Whilst I do understand the current economic climate etc, a jump of this much seems a bit excessive. Not being an expert in these areas are they entitled to increase the premiums by such a large amount after 4 months?

Also, I assume that should the current climate worsen / continue that they'll increase the premium again.

Any advice gratefully received.

I took mine out with Regency through MS.COM, after reading your comments I rang to ask if mine was going up and they said not for the forseable future :j Might be worth a look!

maigege

sorry that this is a little bit off topic.
But where can i buy from Paymentshield cover? i have checked their website, it seems you can only get their insurance from broker??

dacouch

Independent Financial Advisers tend to sell it and mortgage brokers

payless

As with all insurances you will find some companies will sell direct ( own advisers , telesales or websites) other through brokers, and some via both distrivbution channels .

With the recent ecomonic changes these MPPI contracts are getting more complex (particulary initial exclusion periods- that vary from nil - to 180 days ! ) and as such some firms ( like paymentshield) deal through IFA/ brokers, suppose mainly to try and ensure suitability

Also in the past some providers have found that claims seem higher on "direct sell " cheap products.

hunnybunny86

As many Paymentshield customers may have realised this week, they have been forced by the FSA to refund the premium increase imposed on customers billed between 1/3/09 to 1/3/10. The refund will arrive to customers in March 2010 apparently....

I wondered how long it would take before the FSA would catch up with them.....their premium hike back in March 2009 was not recieved well at all!

dunstonh

I wondered how long it would take before the FSA would catch up with them...

Its all providers. Whether they had it agreed in their terms or not. The likes of paymentshield and pinnacle were actually a lot better than these newer cheap and cheerful internet companies. It is they who caused the biggest issues by either withdrawing cover altogether or increasing by significant amounts when their literature was not up to scratch.

their premium hike back in March 2009 was not recieved well at all!

yet it was nowhere near the scale of increases the other providers made.

cogito

Paymentshield belong to Towergate who owe around £600,000,000 to a consortium of banks led by Lloyds. Towergate have the highest margins in the insurance broking business ('broking' in the loosest sense of the word). I would be interested to know how much of the increased premiums has gone to the insurers and how much has been trousered by Towergate. If anyone really wants to know, all they have to do is to ask Paymentshield who are obliged to disclose how much of the premium goes to the intermediary. If it's under 30%, I would be amazed.

Dorastar

Thanks to everyone for explaining what this letter means - I understood it meant we'll be getting some £ back but the rest of it was gobbledigook!