PPI sales fall on 'bad publicity'
- Published: 16/08/2007
The recent bad publicity surrounding payment protection insurance (PPI) has resulted in fewer people taking out PPI products, a new report claims.
A study from market analysts Datamonitor reveals that the total value of PPI policy premiums collected by insurers fell by four per cent to £5.4 billion last year.
The analytics firm says that negative publicity, which alleged that such products were overpriced and being sold to consumers who would never be able to claim on it, has hit sales - and reports that if current negative attitudes towards the products became entrenched, then sales would be considerably dampened over future years.
The Office of Fair Trading (OFT) and the Financial Services Authority (FSA) have both recently highlighted bad practices in PPI markets. New selling practices have been implemented by the FSA, but sales are down as vendors take time to adapt to these new guidelines, the report states.
Datamonitor said that it expects the market to grow slowly over the coming years, and forecasted that it will be worth £6 billion by 2011.
A study from market analysts Datamonitor reveals that the total value of PPI policy premiums collected by insurers fell by four per cent to £5.4 billion last year.
The analytics firm says that negative publicity, which alleged that such products were overpriced and being sold to consumers who would never be able to claim on it, has hit sales - and reports that if current negative attitudes towards the products became entrenched, then sales would be considerably dampened over future years.
The Office of Fair Trading (OFT) and the Financial Services Authority (FSA) have both recently highlighted bad practices in PPI markets. New selling practices have been implemented by the FSA, but sales are down as vendors take time to adapt to these new guidelines, the report states.
Datamonitor said that it expects the market to grow slowly over the coming years, and forecasted that it will be worth £6 billion by 2011.