FSA forced to delay payment protection insurance changes
Under immense pressure from the financial services industry the Financial Services Authority (FSA) has today confirmed that the consultation period regarding the potential mis-selling of payment protection insurance will be extended by a further six weeks. This is a blow to the consumer sector where a number of customers have already stepped forward alleging they were mis-sold payment protection insurance by various financial institutions.
There have been a number of changes to the initial FSA proposals to rectify perceived problems in the system but it is the revelation of a potential compensation bill between £700 million and £1.2 billion over the next five years which has shocked the FSA. It is also believed that customers who have not complained, but may well have been mis-sold payment protection insurance in the past, could be eligible for compensation in the region of £1 billion-£3 billion.
While there is no doubt that changes need to be made with regards to the payment protection industry and the way in which this insurance is sold, the FSA has been forced back to the drawing board by the power and strength of the financial services industry. It is likely that proposals at the end of the consultation period could be a significantly watered-down version of the initial plans.
So Who Will Pay For The Equitable Life Mistakes?
As the Equitable Life debacle continues to gather pace it seems as though Alistair Darling is doing his best to kick the issue into the political long grass for another time. Not one single member of the government has formally commented on the recent report which called on the government to compensate victims to the tune of £4 billion.
The thorough investigation into the incident...
Norwich union cut bonuses
Norwich union has become the latest insurer in the UK to cut bonuses on its profits funds and lower final payouts. While the move was not unexpected after the recent French Provident announcement there is serious risk to many investors across the UK who had seen with profits funds as their saving schemes of the future. There are now serious concerns that too many people in the UK appear to have pl...Read More
Annual undetected fraudulent insurance claims said to top £1.9 billion
The Association of British Insurers (ABI) has today confirmed that in its opinion undetected fraudulent insurance claims are topping £1.9 billion year. As a consequence of the increase in fraudulent insurance claims the average policy in the UK is now £44 more expensive purely and simply to pay for these illegal activities. So how are detection rates faring in the UK insurance sector?
Perilous pooches uninsurable?
Pet owners who have a pit bull may find it very difficult to obtain a pet insurance policy, as many large insurance companies are now refusing to provide cover for 'dangerous dogs'.Both Tesco and Churchill are among companies that will not offer pet insurance to any breeds listed under the Dangerous Dogs Act.A spokesperson for Churchill Pet Insurance said: "Certain dog breeds which are considered...Read More
Millions risk insurance by using their car for work
As many as five million workers are risking invalidating their insurance by using their own cars for company business.According to insurance comparison site, Go Compare, these people are not properly insured, because most private car policies do not cover business when the driver is travelling anywhere other than their usual place of work, and each month, these workers are covering an average 188...Read More