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.
Quinn insurance in move to re-open UK arm
Quinn insurance, the Irish insurance company currently under investigation by the financial regulator, will today make moves to reopen its UK operation which was barred from writing new business last week. The move comes as founder Sean Quinn continues his battle with the regulator in an attempt to reopen parts of his business, which has struggled since intervention by the financial regulator....Read More
What Is An Underwriter? (Part One)
Underwriters are very common in investment markets especially stock markets and insurance markets although the specific role of the two does differ. In affect an underwriter will take some of the risk from a share issue or other financial transaction in return for a commission (payment).
Stock Market Underwriter
When a company is looking to raise funds for expansio...
National insurance rate rise will hit the UK economy
While attempting to gloss over any negative factors in the pre-budget report, Chancellor Alistair Darling was forced to confirm that the government will be increasing national insurance by 0.5% from April 2011 for those earning more than £20,000 a year. The move has been criticised by industry leaders as a backdoor income tax and a tax on the recovery of the UK economy.
Back of an...
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...
Royal Bank of Scotland to close half of its insurance offices
In a rather disappointing and surprise move it has been announced that Royal Bank of Scotland will be closing half of its insurance offices with Glasgow, Peterborough and Bristol earmarked for closure. This will result in well over 1000 jobs being lost amid signs that the company is looking to trim down its insurance operations, which include Churchill and Direct Line, ahead of a forced sale by th...Read More