Speaking at the Protection Review last week, the reinsurer’s chief marketing officer David Heeney said differentiating between the strengths of PPI and income protection could create opportunity.
He said the challenge facing insurers and IFAs is to take the positives from PPI and re-engineer or reinvent them.
He said: “There is opportunity now to take some of the positives over the straightforward sales process of PPI and the long-term protection nature of IP, both of which are strengths. If we put them together there will be real opportunity. We are already beginning to see some very good thinking around those areas.”
Protection Review chairman Andy Chapman told delegates that the industry had turned a blind eye to a PPI problem.
He said: “The first thing that I would like to say about PPI is how sad it was that we had to have the Competition Commission report when, as an industry, we knew everything that was wrong with PPI.
“We have known about it for the last five years and we did nothing about it. We turned a blind eye and it was left to carry on.”
But Couchman says it would be dangerous to do away with PPI, with product innovation a better solution.