The Government has other influences over mortgage protection insurance when it changes its social polices as regards benefits. It also has influence when it changes tax law and other items which affect consumer spending and consumer saving and indebtedness.
Income support for mortgage interest has deteriorated in the last ten years whilst the number of people owning their own home has increased. The Government has appreciated that a down turn in the property market combined with a recession could have a serious impact on families with mortgages and high levels of credit, and they have welcomed initiatives such as the Sustainable Home Ownership initiative by the CML and the ABI.
However the Governments reaction over debt is having a different effect, when the premium for single premium policies is added to the loan amount.
Other influences include more sophisticated methods of combating fraud, especially white collar fraud. Equally the rehabilitation providers are having an influence when they push insurers to use their services.
There is also a Creditor Cross Industry Forum which covers most trade associations, and meets to discuss non-competitive subjects such as fraud and legislation.
Conclusion
Mortgage payment protection insurance is an important general insurance product for insurers, distributors and customers. It is expected that FSA regulation will assist this product and raise public opinion over its sale. To reinforce this the current trend in product improvement should be maintained.