Norwich Union withdraw unemployment cover

Norwich Union and its administrator Paymentshield have instructed British Insurance, without notice, to remove the unemployment only option from the whole of their Mortgage Payment Protection Insurance products with immediate effect. The announcement came yesterday at 9am, with intermediaries being informed by post this morning.

Operations Manger at The Mortgage Warehouse, Jerry Figueroa-Lee commented , “This complete lack of notice to both us and our clients is totally unacceptable. This is perhaps an indication of what is to come from other insurers, but we sincerely hope not.”

He further added, “We accept the current financial climate poses significantly higher risks for insurers, but pulling out of the market when the benefits of the insurance are most needed will simply compound the mistrust the public have for insurers.”

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