AXA, one of the UK’s largest insurers has announced that it intends to withdraw from the Mortgage Payment Protection Insurance (MPPI) and Accident, Sickness and Unemployment (ASU) markets. As a result, Axa will no longer accept any new business under either product after 31st March 2010.
This comes as disappointing news as Axa not only provides payment protection directly in combination with mortgage life insurance policies but also underwrites a number of quality MPPI and ASU products for other providers and brokers. This news affects the MortgageSure and MortgageSure Plus products offered by wholesale insurance brokers Berkeley Alexander, which will have to be removed from the market. However, the good news is that Axa have provided a commitment to continue with the existing policies already in force for the foreseeable future, so for all current policies, there is no need for any action. In response to this news Berkeley Alexander have announced that they plan to launch a new MPPI product in the near future.
A number of ASU and MPPI products can still be brokered via Berkeley Alexander. These products are underwritten by Great Lakes (part of the Munich Re Group) and Red Sands Insurance Group.
How this will impact Drewberry Mortgage Insurance
Drewberry Mortgage Insurance will no long commit to broking any mortgage payment protection or accident, sickness or unemployment products underwritten Axa. The deadline for new applications is at the end of March but given Axa’s withdrawal from the market and uncertainty surrounding how long Axa will service existing clients it is prudent that Drewberry recommend our clients go elsewhere.
Drewberry Mortgage Insurance will continue to use other MPPI and ASU products offered by Berkeley Alexander, along with the products offered by Paymentshield and Uinsure, who both provide market leading policies.