Am I required to keep insurance with the bank where I got the loan?

You are not required to keep the insurance with the bank where you took out the mortgage; you are free to choose the insurer. However, you should check whether moving the insurance affects the loan conditions, such as an increase in the spread.

In practice, when you move the insurance away from the bank, you may lose linked discounts on the mortgage, which can increase the cost of the monthly repayment.

For example, a bank may offer a lower spread on the condition that you take the insurance in-house. If you move the policies to a cheaper external insurer, the spread may rise, cancelling out or reducing the savings made on the insurance itself.

This means that switching insurance does not always result in real savings, so it is essential to assess the overall impact before deciding.