British Insurance - MPPI premium

gab_keeler

Just been advised by British Insurance my MPPI monthly premium (Mortgage, Accident and Illness) to cover £2K per month will increase from £55 to £133.80 from the 1st of June 2009. Apparently this is due to previous underwriters ASSURANT Solutions having increased their premiums to unacceptable levels and British Insurance have instead joined forces with another underwriter Alpha Insurance to offer continued cover with no changes to existing T&Cs at the above increased premium. According to British Insurance the reasons for the increase is due to the current climate.

For completeness:

Monthly cover: £2K
With current employer: 18 years 7mths
Age: 42
Health Ok
Height 5'6''
Weight 12st

I suppose I am struggling with the increase in the premium even in the current climate and in light of what I've seen on the web (iProtect) do not feel British Insurance have done their best to find a good alternative which is forcing me to consider switching.

I raised this with the FSA and will let the complaints procedure take its course. There must be other people who have experienced the same with British Insurance. Has anyone else pushed back and got results ? I'm I missing something here ?

Are there any recommendations for similar MPPI suppliers which would be willing to waive initial exclusion periods around unemployment/accident or sickness when the policy is transfered ?

Cheers,

Gabriel

stephenni1971

I raised this with the FSA and will let the complaints procedure take its course

You took out a temporary insurance policy where the insurers can alter the premium as necessary. This is itself would not be grounds for a complaint.

According to British Insurance the reasons for the increase is due to the current climate.

You bet it is. Some forecasts suggest another million could be out of work within the next year so in light of this ASU/MPPI policies are going up in cost to cover the increased risk. As Dunstonh so often points out premiums did fall when risk of redundancy was so low, circumstances have changed and so must the rates.

Are there any recommendations for similar MPPI suppliers which would be willing to waive initial exclusion periods around unemployment/accident or sickness when the policy is transfered ?

You wont get recommendations from MSE as no-one here is authorised to do so, but bear in mind whatever provider you look at, none will be offering any guarantees on premium and you could be jumping from the frying pan into the fire...

dunstonh

I raised this with the FSA and will let the complaints procedure take its course.

Why? what have they done wrong?

Has anyone else pushed back and got results ?

Quite a few have complained about the increase but seeing as its allowed and a commercial decision, the FOS has no remit to rule against the company.

TEDDYRUKSPIN

This is happening everywhere. Unfortunately due to the recession companies are trying to reduce their losses. Seek an IFA. Some companies allow you to transfer to another company without a waiting period if you have existing MPPI.

Have you noticed majority of this MPPI have been recommended previously by this website? All I say is stop recommending people and properly seek an advisor!

gab_keeler

All many thanks for your replies

payless

I suppose I am struggling with the increase in the premium even in the current climate and in light of what I've seen on the web (iProtect) do not feel British Insurance have done their best to find a good alternative which is forcing me to consider switching.

I raised this with the FSA and will let the complaints procedure take its course. There must be other people who have experienced the same with British Insurance. Has anyone else pushed back and got results ? I'm I missing something here ?

Doubt they have to prove they have looked at all alternatives , rather they have come up with a new deal that might suit / fits in with their commercial needs as well

Are there any recommendations for similar MPPI suppliers which would be willing to waive initial exclusion periods around unemployment/accident or sickness when the policy is transfered ?

Yes some companies do this BUT you will be asked underwriting questions before they will consider taking you on.