MPPI firms agree to refund premium increases

Insurers have agreed to refund policyholders of mortgage payment protection insurance (MPPI) £60m in a deal brokered by the Financial Services Authority in response to concerns about premium hikes in 2009. Earlier this year, the FSA chairman Adair Turner warned MPPI firms that he was unhappy about premium increases during the recession and how firms were disclosing such higher costs and reductions in cover to policyholders.