Jubilee calls for clarification on PPI

24/01/2012

Jubilee has called upon government and regulator to address the uncertainty surrounding regulation of payment protection insurance (PPI) in order to let the industry grow.

The specialist Lloyd’s insurer responded to the recent joint consultation by the Financial Services Authority (FSA) and Office of Fair Trading (OFT) on the range of new PPI products being introduced to the market by asking for clearer guidance.

According to Jubilee, there have been many changes made to the PPI products now available to customers but a lack of guidance on how to approach them meant many insurers were not getting involved in the PPI market, despite the fact that many consumers were in need of such products.

Chris Biles, active underwriter and head of personal lines for Jubilee Syndicate 5820, said: "Anything which helps to clarify the responsibilities of both distributor and insurer has to be welcomed but the FSA and OFT must recognise that there is a clear role for both lenders and insurers in helping to ensure that borrowers have access to appropriate ways of reducing the risk of being unable to maintain financial commitments.

“The key will be that any solution is designed to be easily understood and matched to the specific needs of the customer.”

Original Article: Insurance Age