Axa terminates MPPI contract with Berkeley Alexander
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Axa has terminated its contract with Berkeley Alexander to underwrite two of its mortgage payment protection insurance products.
From March 31 the provider will no longer underwrite Berkeley’s mortgagesure and mortgagesure plus products. It will continue with existing policies.
As a result, commission payments on both products sold via the broker have been reduced to 15 per cent.
Berkeley Alexander says it is now working with its providers to launch a new mortgage payment protection insurance product shortly.
In March last year, Money Marketing revealed that Axa was withdrawing its accident, sickness and unemployment offering to new customers as part of its own Axa Protection Account.
An email sent to advisers at the time said demand for ASU and household cover is too low through this channel for the provider to continue offering it in this way.
An Axa spokeswoman says: “This particular scheme is quite small and, in consultation with the broker concerned, we will no longer underwrite this product after March 31.”
But the spokeswoman adds: “However, we remain committed to MPPI, which we underwrite for a number of other partners and brokers, and we have been working hard with them over the last few months to ensure that all our products for both existing and new customers meet the FSA requirements.”
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