Portugal Assembly approves proposal to ease mortgage insurance switching

The Portuguese Assembly of the Republic has approved a proposal from the Juntos Pelo Povo (JPP) party aimed at increasing consumer freedom regarding insurance associated with mortgage loans. The initiative, presented by deputy Filipe Sousa, seeks to allow families to switch life or multi-risk insurance providers to cheaper alternatives without facing penalties from banks, such as increased spreads or the loss of bonuses.

The approved resolution recommends that the government implement the necessary legislative measures within 90 days of publication. It further suggests that insurance substitution should be possible during the contract term without early termination penalties, that the process be free of charge, and that banks provide reasoned decisions within ten business days.

The proposal passed despite opposition from the PSD and CDS-PP parties, while the Iniciativa Liberal abstained from the vote.