Leading Mortgage Payment Protection Insurance Provider Amends Rates

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A Leading UK provider of Mortgage Payment Protection Insurance (Accident, Sickness and Unemployment) has announced it will increasing rates from Monday 13th October. The increases are as a result increased unemployment claims and will hit UK consumers in the pocket as the economy worsens.

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With the current economic climate insurance companies must ensure that products they bring to the market continue to instill confidence for the consumer with regards to claims and future prospects.

Leading mortgage payment protection insurance provider, Hitachi Capital (part of the larger Hitachi Bank) have today announced that they will be effecting a rates change from 13th October.

The pricing structure changes come amid rising claims on Unemployment Insurance policies and lower than expected claims for Accident and Sickness.

Initially designed to effect only new policies the rates changes include Unemployment Cover increasing by 25%, Accident Sickness and Unemployment cover increasing by 15% and Accident and Sickness only cover reducing by 15%.

When asked about the price increases, Alan Knowles, Practice Manager at independent broker Top Quote UK said, "With the current economic climate insurance companies must ensure that products they bring to the market continue to instill confidence for the consumer with regards to claims and future prospects."

These moves by Hitachi Capital, sparked by a major underwriting review, mark a responsible attitude from the insurer to ensure it can meet future claims obligations and continue to operate effectively in an increasingly difficult market.

In an announcement to brokers using the service, Chris Jefford, Head of Business Development at Hitachi Capital Europe, said "[Accident, Sickness and Unemployment] and [Unemployment] Only are both increasing in line with the worsening economic situation and the associated significant rise in Unemployment claims that we are seeing," he also added that "conversely we are reducing our [Accident & Sickness] Only rates as the claims result has been better than expected."

With consumer confidence falling rapidly in the economy, Hitachi's moves will serve to sure up confidence in their own business and act as a signal to consumers that the company has a long future and will be able to meet any claims in the near and distant years to come.

Hitachi Capital's announcement follows similar announcements from insurers such as Ant Insurance who have now completely withdrawn from the Unemployment insurance only market for mortgage payment protection and who have also increased premiums for existing policies as well.

When asked about existing policies with Hitachi Capital, the company was eager to express that at the moment the rates changes will only affect new policies but that they may also conduct a review of existing premiums in the near future.

Top Quote UK are a leading national provider of Life Assurance, Critical Illness Cover and Mortgage Payment Protection covers based on the Yorkshire coast. They are an independent broker and offer whole of market advice with all major providers searched and analysed specifically to each client's needs.

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Christopher Burrows
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