Independent Brokers Target Undermined Payment Protection Insurance Market
08 February 2007
Shaken consumer confidence” over payment protection insurance (PPI) products will open opportunities for independent brokers to offer PPI in lieu of credit card or store card companies, the British Insurance Brokers’ Association (BIBA) has claimed.
BIBA has promised to support brokers in fulfilling the compliance regulations, in recognition of the compliance challenge – the Financial Services Authority (FSA) has recently fined several UK companies for mis-selling PPI as part of a credit card or store card loan package.
The furore around PPI has underlined the fact that credit card or store card PPI providers often fail to explain to customers that the product is not compulsory, or sell products which do not match up to the individual’s insurance needs.
“Many existing providers continue to be challenged by the regulator and media to improve their sales processes, cover and cost,” commented BIBA’s chief executive, Eric Galbraith.
Meanwhile, moneyfacts.co.uk urged customers to discover whether they had PPI on their credit or store cards, what it was costing them and whether it was really necessary.
The Office of Fair Trading (OFT) investigation into PPI is ongoing.