Main mortgage protection provider halts new business
ONE of the main providers of insurance that covers mortgage repayments for workers who lose their jobs has decided to stop writing business in this market.
Cardif Pinnacle, which has offices in the IFSC in Dublin, has already pushed up premiums by 40pc this year.
Now it is to stop writing new business in this market because of a surge in claims.
In a statement, John Castagno, product development and marketing director of Cardif Pinnacle, said: "Yes, it is correct that we no longer provide new creditor insurance business in the Republic of Ireland.
"However, we remain committed to honouring and supporting our existing customers."
The number of people signing on in January was 436,936. This has meant there has been a sharp rise in claims for mortgage cover from those losing their jobs.
Earlier this year the insurer increased its premiums by 37pc to €6.25 per €100 of monthly mortgage repayments covered for existing policy holders.
Mortgage repayment protection covers repayments for a year if the insured lose their jobs through redundancy, accident or sickness. In a letter to brokers, Cardif Pinnacle said that "due to Pinnacle's adverse underwriting experience in Ireland, Pinnacle has no option but to terminate the agreement" with brokers.