Mortgage payment protection insurance (MPPI)

The Association of British Insurers (ABI), the British Bankers Association (BBA), the Building Societies Association (BSA) and the Council of Mortgage Lenders (CML) have reached an agreement with the Financial Services Authority (FSA) that sets out a framework for dealing with recent and possible future changes to policy terms and conditions affecting some Mortgage Payment Protection Insurance (MPPI) customers. The agreement is a response to FSA Chairman Lord Turner’s comments on MPPI at the ABI’s Biennial Conference in June 2009, where he expressed concern about increases in premiums, or reductions in cover, on MPPI policies during the recession.

The details of the agreement can be found on the FSA's website. The industry has issued a press release in response.