INDUSTRY WILL WORK WITH THE OFT IN THEIR STUDY INTO PAYMENT PROTECTION INSURANCE

The ABI (Association of British Insurers) will be co-operating fully with the OFT in their study into payment protection insurance announced today.

Nick Starling, the ABI’s Director of General Insurance, said:

“ The FSA recently recognised the value of payment protection insurance in protecting against loss of income through redundancy and illness. The OFT’s decision to carry out a market study should complement the work insurers and lenders are already undertaking to ensure that there is a good basic policy standard all customers can rely on. Together with the FSA, work is also in hand on further driving up selling standards.”

Millions of customers benefit from this insurance, with over 15 million policies in force. Last year nearly 500,000 claims were paid, enabling customers to protect their homes, possessions and preserve their credit status.

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Notes for Editors

1.            Enquiries to:       

Malcolm Tarling  020 7216 7410 (Mobile: 07776 147 667)

2.      The ABI is the trade association for Britain’s insurance industry. Its nearly 400 member companies provide over 94% of the insurance business in the UK. It represents insurance companies to the Government, and to the regulatory and other agencies, and is an influential voice on public policy and financial services issues. ABI member companies hold more than a fifth of all investments traded on the London Stock Exchange, on behalf of millions of pensioners and savers.

3.      An ISDN line is available for broadcasts.

Notes