Removing monthly premium protection

We'll be removing the free Monthly Premium Protection cover from our personal lines
home and motor policies.

Why?

The FSA's new Insurance Conduct of Business Sourcebook (ICOBS) rules mean that the regulations on selling home and motor policies have been simplified. However, the Monthly Premium Protection section falls into the Protection category, where regulations have increased.

Customers' understanding and use of this cover is low and we wanted to avoid the situation where you were forced to spend more time talking about Monthly Premium Protection than the main policy benefits.

Monthly Premium Protection cover was provided free, so rates remain unchanged.

Customers who have already renewed their policies will continue to be covered until their next renewal date. We'll let all policyholders know about this change in a Notice to Policyholder which will be issued with renewal documentation.

Published: 16/06/2008