The company believes the move could lead the consumer to basing product selection on cost alone without having a true understanding of how the product operates. This is especially the case when considering mortgage payment protection insurance (MPPI.)
Head of marketing at Paymentshield, Sandy McPherson, said: “While the introduction of the table is a welcome development and can only raise the profile of MPPI as a necessary insurance particularly in today’s economic climate, we should not overlook the importance of the broker in the sales process. After all, they are the experts and are key to helping consumers recognise the need to take out this essential insurance in the first place.
“This is especially true when considering MPPI as there have been innovations in this market including back to day one cover, periods of free cover and age-banded options – all of which need explaining to the client. Simply looking at tables cannot tell the whole story about the product.
“The FSA should make it clear on its website that consumers should consult their financial adviser for further information before deciding on which product best suits their needs.”