The payment protection insurance (PPI) market is to be subjected to a detailed investigation by the OFT. You can get PPI cover to safeguard your ability to pay off loans, such as mortgages, in case something were to happen to you. Initial research has revealed that the £5.4billion market generates high gross profit margins and that actual claims by policyholders are relatively low. New entrants on the PPI market face barriers to entry such as high costs, and information available to consumers is often very technical and hard to obtain, making it difficult to 'shop around'. The probe was triggered by a super-complaint from Citizens Advice and the results will be made public at the end of the year.
Payment Protection – In the Interest of Consumers?