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Insurance industry responds to Competition Commissions findings on PPI

Commenting on publication of the Competition Commission's latest report on Payment Protection Insurance (PPI), Nick Starling, the ABI's Director of General Insurance and Health, said:

"We acknowledge that there have been problems in the PPI market and we have done a lot to change that; these changes now need time to bed in. We are very concerned that the Competition Commission's proposed remedies could destroy this market, particularly while we are facing a period of economic uncertainty. It would be disastrous to leave many people unprotected to deal with unforeseen financial crisis.

"PPI is an optional product, available from a range of different providers, and it is vital that customers understand precisely what their policy covers. If they are comparing products, it's important that they examine all their features and benefits, not just prices.

"The ABI will carefully examine the recommendations made by the Competition Commission and will respond in detail to the consultation."

The ABI has always supported measures to make PPI more accessible and transparent for customers, including making more information available to consumers so that they can make an informed decision when buying a PPI policy. Over the last two years the industry has made changes to PPI as a product; the market is changing and therefore should not be judged retrospectively.

Last updated 01/07/2016