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.”
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.
Britons working abroad may lose out on tax relief on their savings because of A-day changes, says Clerical Medical says.
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 […]
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 […]
The Government has announced future reductions in the rate of corporation tax. Will this affect the ‘internal’ taxation of Authorised Investment Funds? Read more
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The FCA has finished implementing the recommendations of the Financial Advice Market Review with the publication today of a policy statement relating to personal recommendations today. The FCA aligned itself with Mifid II last year by mandating that regulated advice must contain a personalised recommendation. In August last year, the FCA published a consultation paper […]
Things are moving fast over at the newly merged Standard Life Aberdeen. The very first results for the combined company hit the wires this morning and, finally, a clear strategic direction is emerging. Overall, there were net outflows. Not a great start, particularly given Scottish Widows’ parent Lloyds’ decision to pull its £109bn mandate earlier […]
Providers looking to re-brand must carefully consider those buying the products and the advisers who have to explain them I started my working life at Hill Samuel Life Assurance Ltd. As company names go, it was not the most exciting and we were occasionally confused with H Samuel the jeweller, but at least it said […]