Cancelled MPPI Insurance Assurant

the-shack

We received a letter over the weekend from Assurant cancelling our MPPI policy. When calling them today all I got from them is that they were not longer offering the policy. 

Anybody else in this position and are they allowed to do this?

I feel like I have paid into a policy for the last 15 years and now things are getting difficult that are just walking away.

Cheers

Ray

dunstonh

Anybody else in this position and are they allowed to do this?

Yes.  Lots of people and yes they are allowed to do it.  Only the PHI version of income protection is not allowed to be cancelled by the provider.  

I feel like I have paid into a policy for the last 15 years and now things are getting difficult that are just walking away.

The cross-subsidy pool for PPI fell off a cliff with the PPI complaints issue.  Even though regular premium PPI was the better type and suffered far less than the loan/credit card type, the market became much smaller.  Then along came coronavirus and the re-assurers were no longer interested in offering cover.   A few said they still would but priced it so high that it was not commercially viable for most.

The product is probably at or near end of life from a viability point of view.  Hence why it is being ended by most.

Sandtree

Its at most an annual policy, some are monthly, and as you are free not to renew so are they free not to offer renewal terms. Many providers have closed their PPI books in light of the double whammy of the PPI miss-selling and Covid and those that havent have tripled premiums. 

As mentioned above, the long term product is PHI which is a single policy until you're 65 (or whatever age you choose) and so can only be canceled by the insurer for non-payment or other material breaches of the T&Cs and not just not renewed. Its benefit is it will also payout for years if needs be whereas most MPPI will payout a year or two tops.