Lloyds bank agrees to stop PPI sales
Lloyds bank has today agreed to withdraw PPI, payment protection insurance, from the list of services provided by the group. Earlier this year we saw the regulators suggesting that the way in which PPI is sold to the general public should change in the future. A cooling off period and a more detailed analysis of the total cost of PPI, together with discussions regarding the fact that many consumers may already be covered, were just two proposals put forward.
The announcement by Lloyds bank, which is likely to be copied by many other institutions in the UK, comes just 24 hours ahead of a Financial Ombudsman Service report. The report is expected to show that nearly 150 people a day have logged complaints about PPI in the three months to the end of June, up from 135 a day last year. A number of financial institutions have been accused of "mis-selling PPI contracts" although these claims have been refuted by the likes of Barclays bank and a number of UK institutions are taking action to prevent the withdrawal of PPI.
It will be interesting to see how the Financial Ombudsman Service report goes down in the city and indeed whether it does officially sound the death knell for PPI.
Tesco announces new insurance partner
Tesco is set to increase its presence in the UK insurance market if a deal with insurance giant Fortis goes ahead. The deal would allow the Dutch-Belgian company to offer car and household insurance to the ever-growing number of Tesco insurance customers. If the deal is concluded, as seems highly likely, this would see Tesco's current partner, the Royal Bank of Scotland, lose its involvement in a...Read More
Insurance premiums set to rise as Lloyd's of London struggles
The announcement of a 50% reduction in Lloyd's of London profits from £3.9 billion to £1.9 billion seems like a significant drop but in the context of the current economic climate this is a more than credible result. However there are signs that general insurance premiums around the world are set to rise over the next 12 months.
A mixture of slowing economies around the world, wea...
Protect your income against illness or injury as purse strings tighten for many
Studies throughout 2012 have revealed an increasing need for Britons to take out some kind of income protection insurance, in order to provide them with a financial safety net should they be unable to work due to illness or injury. It has been revealed that for a third of adults in the UK, the reality is they either spend more than their salary each month or simply just manage to break even. Ar...Read More
Young drivers could become 'uninsurable'
Young drivers could be priced out of the insurance market if action is not taken to reduce the number of deaths and injuries caused by motorists aged under-25, one insurer has warned.Speaking following the release of a new education pack aimed at teaching school pupils about the impact of dangerous driving, Co-operative Insurance (CIS) warned that such drivers were responsible for causing 35 death...Read More