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.
2.5 million motorists 'driving with invalid policies'
More than 2.5 million motorists in Britain are driving with invalid insurance policies, according to new research.A survey says that ten per cent of UK drivers are potentially invalidating their policies by lying to insurance providers.Price comparison website uSwitch, which conducted today's research, says that a further six per cent of car-owners are driving on British roads with no insurance wh...Read More
UK home holidaymakers 'not taking out insurance'
Many Britons are not taking out travel insurance for their holidays within the UK - despite the risk of being left out of pocket.New analysis from Sainsbury's Finance shows the potential scale of the problem, by finding that 15 per cent of British adults have never gone abroad and that around 50 million domestic holidays are taken each year at a total cost of £10.9 billion.The firm suggested that...Read More
UK Insurers Delay Introduction Of Genetic Testing
While the subject of genetic testing has been at the forefront of the British insurance industry for many years, the industry spokesperson, the Associations of British Insurers, has announced plans for a further freeze until 2014. Under the freeze, consumers will still be able to take out insurance cover without disclosing the results of any genetic tests which they may have had carried out.
Is the insurance sector next for a fall?
While we have heard much about the performance of the leading UK banks over the last few days there has been little mention of the problems facing insurance companies over the last few months and the challenges which lay ahead. Today's news that US insurance giant AIG is in trouble and had to carryout a fire sale $20 billion asset disposal to keep the group afloat has brought the sector to the at...Read More
UK government to challenge EU over insurance rules
The UK government is set to challenge the EU commission head-on with regards to solvency II rules which are set to be introduced to the European marketplace in the short term. The UK government believes that these "over conservative" solvency rules will see UK insurance companies having to shore up their reserves by up to £50 billion. There will obviously be a cost to this additional reserve requ...Read More