This mortgage indemnity insurance is not in the consumers interest. It creates moral hazard.
For people in difficulty the banks are supposed to work with them in order to at least seek sustainable solutions. However in banks who hold such policies have greater incentives to seek repossession and ultimately cash them in.
Look at the court lists for repossession there is one institution who is seeking repossession in an inordinate amount of cases relative to its % of mortgage.
It holds a policy for every mortgage which is why its repossession rate is astronomical