View more on these topics

OFT finds low claims fuel huge PPI profits

The Office of Fair Trading has slammed the payment protection insurance market after finding providers are making massive profits on the back of low claim ratios.

It has led to calls for the FSA to delink loans and PPI so stand-alone providers of PPI can compete, driving down prices and giving brokers a foothold. The OFT says PPI has one of the lowest claim ratios of any insurance at just 17 per cent.

British Insurance managing director Simon Burgess says the report is likely to be referred to the Competition Commission and he expects providers will be forced to delink loans and PPI, which could provide opportunities for brokers. He says: “If the products were unbundled, it would kill off a huge cash cow for these providers and they would stand to lose out on a lot of money. It would be great news for brokers.”

British Insurance Brokers’ Association technical services manager Graeme Trudgill says: “We do not like the way that single-premium payment protection is sold by the banks. The money they are making on it is huge. The market needs to be opened up.”


Square up to lending problems

If the Council of Mortgage Lenders does not think it has sufficient data for the sub-prime market, then it had better get a handle on it soon.

AMI Euro guide targets brokers

The Association of Mortgage Intermediaries has launched its latest factsheet entitled on the impact of European legislation on the UK mortgage market.The information entitled A Guide to European Financial Services Legislation and has been unveiled as the AMI claims the impact of European Commission decisions is having an increasing effect on UK financial services.The factsheet […]

Nucleus looks to sign up 50 IFAs

Fledgling wrap provider Nucleus is in late-stage discussions with a number of IFA firms and expects to have signed up a total of around 50 by the end of the year. Chief executive David Ferguson says Nucleus is in talks with 60 adviser firms but only around 75 per cent meet its criteria of being […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm