Biba is to roll out a new mortgage payment protection scheme this month designed to significantly undercut existing bank products.
The cover will start at £2.50 per £100 of cover. It will be underwritten by the Bankers Insurance Company and sold through Burgesses brokers.
Biba technical services manager Graeme Trudgill said: "We think we can significantly undercut the products offered by the banks. This will be one of the most competitive schemes on the market. We expect it to be half the price of traditional products. We believe this is a market that brokers haven't really pushed."
Trudgill said Biba was hoping to write well over a £1m gross written premium in the first year of operation, though the potential was significantly higher given the price gap between banking products and the Biba scheme.
The commission on offer to brokers is expected to be around 20%.
