Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 17th of July 2018
May 14, 2010

Which? backs choice of protection for customers

by Richard Kilner

Story link: Which? backs choice of protection for customers

Following the decision of the Competition Commission to uphold the ban on point of sale Payment Protection Insurance (PPI), Peter Vicary-Smith, chief executive of Which?, has opined that whilst people need protection, PPI was rightly criticised for its cost and poor coverage level.

Vicary-Smith went on to state that point of sale PPI effectively put the customer in a catch-22 situation, having a forced choice between shoddy protection and no protection.

He added that it was best sold separately, as this would enable the customer to find the product that best catered to their needs.

Vicary-Smith concluded that the industry ought to focus its efforts on developing protection which was both value for money and provided an adequate level of coverage.

In March of this year the Financial Services Authority (FSA) estimated that PPI misselling could cost the industry between £700m and £1.2bn in compensating those who have complained.

Including those who have yet to complain, the costs escalate to £1bn to £3bn, with brokers liable for up to £430m.

 

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