Cardif Pinnacle, BNP Paribas' UK insurance unit, has terminated its income protection insurance policy after it received an unprecedented amount of claims.
Having underestimated the frequency of redundancies in the UK, Pinnacle has informed around 2,600 policy-holders that their income protection insurance is set to expire.
Policy-holders were given only 30 days notice of the policy’s end and a broker of Pinacle, SalaryProtect, has arranged for policyholders to apply for cover from British Insurance, another income-protection insurer.
British Insurance is reported to have offered coverage to about half of Pinnacle’s former policyholders, but at a significantly higher rate.