Wholesale intermediary Grip has quit the intermediated mortgage payment protection insurance market (MPPI), passing its £3.5m book to rival provider Berkeley Alexander.
The bulk of Grip's £6.3m MPPI book is sold through a network of 1,900 intermediaries. But the firm also sells £2.8m worth of MPPI cover direct through its website, securityfirst.co.uk.
Managing director Simon Burgess claimed his firm had been forced into the move because the General Insurance Standards Council (GISC) regulation had massively increased his company's professional indemnity premiums.
Burgess said he was quoted a premium of more than £240,000 compared to just £17,000 last year but he declined to give the name of the professional indemnity insurer.
Under the deal with Berkeley Alexander, Burgess said he had had no up-front fee, but will take an over-rider on an ongoing basis.