Industry responds to FSA PPI findings

Ramesh Sharma

June 1, 2004

Ian Moffat, sales and marketing director at Assurant Solutions, said the review should serve as a starting point. “There’s clearly work to be done to address the concerns and to ensure every policy sold represents a valuable addition rather than a financial burden. It’s up to insurers and distributors to work together to create pro- ducts and sales practices that ensure individuals are offered product solutions that meet their needs.”

Shane Craig, managing director of Paymentcare, commented: “We’ve consistently called for tighter controls of the selling of this cover on the high-street. Like the FSA, we’re particularly concerned at the evidence that prov-iders persist in selling expensive single premium cover to people not fully aware of what they’re buying.

We agree that, when properly structured, explained and sold, PPI provides worthwhile cover for consumers. But there’s clearly a fundamental lack of awareness among consumers as to how much they can save by going to a reputable broker rather than accepting bank and building society premiums.”

Ian Mullen, chief executive of the British Bankers Association (BBA), said: “Treating customers fairly is something upon which banks place great importance. Staff are fully trained in competence, they’re monitored and there are compliance systems in place.

“Naturally, where these checks are not working, they need to be addressed accordingly. We shall be pleased to continue talks with the FSA on how current selling practices could be improved, although we cannot of course compromise competition between the different providers.”

Paul Smee, chief executive of APACS, said: “We would draw attention to the fact the Banking Code requires PPI providers to act fairly and reasonably in all their dealings with consumers. We always advise consumers to carefully consider their options before taking out any deal.”

Sign up to our daily email