Unemployment insurance policy withdrawn

Runningman11_

So I’ve had an unemployment insurance policy and life insurance policy jointly with the bank which is underwritten by a large insurance company, I’ve had a letter stating that they are withdrawing the unemployment insurance as they no longer wish to offer this type of insurance policy. 

So I’ve paid in over 14 years and I feel the rugs been pulled out from under me as I’ve recently learned that the establishment that I work in is due to make me redundant in the next year or so depending on planning permission etc, so I’ve  already had the discussion with my employer about having to take redundancy, this leaves me without unemployment insurance as no new insurer will take on a new policy. Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going. Complained to bank who will raise a complaint but told me not to hold my breath. Apart from complaining to financial ombudsman I don’t know what else to do.

dunstonh

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

Full income protection plans (PHI) cannot be cancelled by the insurer. But they don't cover redundancy.   PPI plans are annually renewing.  Almost pay as you go.   So, they only have to cover those short term periods

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

There is no market for them and no appetite for the risk.

Apart from complaining to financial ombudsman I don’t know what else to do.

Complaining to the ombudsman will not get the policy reinstated as the FOS cannot rule in commercial decisions.   There is no wrongdoing here by the bank.     PPI was effectively killed off because of all the people complaining about it and the coronavirus put all the reassurers off from covering it.  If the insurers cannot get the reassurers to cover it, then they cannot offer it.
 

NormW

dunstonh said:

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

Full income protection plans (PHI) cannot be cancelled by the insurer. But they don't cover redundancy.   PPI plans are annually renewing.  Almost pay as you go.   So, they only have to cover those short term periods

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

There is no market for them and no appetite for the risk.
 

Are you basically saying that it's now impossible to obtain "unemployment insurance"?

I suspect I'm in the same boat as the OP, recently had a letter stating the insurance is being withdrawn, probably with the same bank at a guess.

Sandtree

NormW said:

dunstonh said:

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

Full income protection plans (PHI) cannot be cancelled by the insurer. But they don't cover redundancy.   PPI plans are annually renewing.  Almost pay as you go.   So, they only have to cover those short term periods

 Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

There is no market for them and no appetite for the risk.
 

Are you basically saying that it's now impossible to obtain "unemployment insurance"?

I suspect I'm in the same boat as the OP, recently had a letter stating the insurance is being withdrawn, probably with the same bank at a guess.

Its massively more difficult than it used to be, from memory one insurer was still listing the option on the aggregator sites but with that level of competition you can probably guess what premiums will be like

Aretnap

Runningman11_ said:

Surly insurance companies can just cancel these types of policies, I would have thought they could withdraw them from any future sale but still keep existing policies going.

If it's an annual policy (as most unemployment policies are/were) then this is exactly what they've done. The policy is like car or home insurance - it only ever lasts a year, after which they are free to offer you a new policy (ie renewal) or not. So letting the existing policies run until they expire but not offering any new ones has exactly the effect that you've just seen. 

The situation is similar to a car insurer not offering you renewal because they've decided that they no longer want to insure the particular sort of car that you drive, or because they're getting out of the car insurance business altogether. Unfortunately the difference is that while you would have plenty of choice of other car insurers, there are few or no companies still offering unemployment insurance post-Covid, and even pre-Covid you would have had difficulty finding a new policy if you already knew there was a strong possibility of being made redundant in the near future. 

Sorry not to be more help, but unfortunately that's how it works with these policies. Your far from alone. 

dunstonh

Are you basically saying that it's now impossible to obtain "unemployment insurance"?

From 2020 until some point last year, there were no providers open for business.   However, I believe there is one currently available for new business.