Mintel examines the market for creditor insurance in this report. It is the first occasion on which this particular sector of general insurance has been covered as a separate entity. Creditor insurance is sometimes known as payment protection insurance (PPI), and is offered to the consumer as an add-on when taking out a loan, whether it be a mortgage, personal loan or balance on a credit or retail card. A creditor policy will meet the policyholder's monthly repayments if the individual is unable to work due to accident, sickness or unemployment.

The report looks at the market dynamics which impact on demand for creditor insurance, namely mortgage loans, credit cards, personal loans and car finance agreements. These products drive the general demand for payment protection. Actual take-up of creditor cover relates to the macroeconomic conditions in the UK and perceptions about the likelihood of unemployment or prolonged sickness. These issues are discussed in the Market Factors section of the report.

Specially commissioned consumer research was undertaken by Mintel in March 2000 to gauge the attitudes of a sample of 1,635 adults towards taking out creditor insurance on loan products and the need for protection against loss of earnings due to accident, sickness or unemployment. The results suggest that there are still substantial opportunities for providers to grow and develop this market.

Other Mintel reports of relevance to this market include:

POP Finance, Finance Intelligence, April 2000

Personal Loans, Finance Intelligence, August 1999

Mortgages, Financial Intelligence, March 19

Car Finance, Finance Intelligence, May 2000

Credit Cards, Finance Intelligence August 2000.

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