FSA confirms 3 million payment protection insurance plans under review
The Financial Services Authority (FSA) has today confirmed that around 3 million people may well be eligible for compensation payments which could top £2 billion over the alleged mis-selling of payment protection insurance (PPI). So far the authorities have received in excess of 100,000 complaints regarding PPI and there are many more expected in the short to medium term.
The authorities have today issued new rules on how the flood of complaints should be handled and indeed what form and what size of compensation can be expected. This is a situation which many banks in the UK have attempted to delay and indeed a number of banks clubbed together to demand a review of the PPI ruling by the FSA. In simple terms, the FSA has introduced new rules which will come into play later in 2010 which will offer customers more information on PPI products, a cooling off period and the ability to look elsewhere for their cover.
However, there are many points of friction between the UK financial industry and the FSA over changes to PPI. Quite how these will impact upon the final ruling and future of PPI very much remains to be seen.
Popularity of last-minute holidays fuels insurance problems
The popularity of last-minute holidays has fuelled the number of tourists travelling abroad without insurance, according to research from Sainsbury's Travel Insurance.Sainsbury's found that around 8.8 million people or 18 per cent of the adult population will book their holiday two weeks or less before they travel in order to save money but that one in five (19 per cent) will not have purchased tr...Read More
Should there be more regulation of the UK insurance market?
If there is one area of household expenses which attract controversy and complaints it has to be insurance, with car insurance one which is always to the forefront. More and more people in the UK are now claiming that despite having a clean driving licence and a no-claims bonus they continue to see significations and ongoing increases in their premiums. Should there be more regulation of the UK ca...Read More
Insurance fraud peaks at 2300 claims a week
The Association of British Insurers has issued a damning report on the UK insurance arena with confirmation that over 2300 fraudulent insurance claims are being discovered each and every week. It is estimated that these claims account for over £800 million a year which is then passed on to UK consumers who are left yet again to foot the bill. So why are insurance fraud claims rising? While the...Read More
Aviva backtracks on £1 billion payout
Last July saw insurance giant Aviva announce plans to distribute £1 billion of orphan assets amongst its policyholders in what was seen as a groundbreaking move for the sector. However, Aviva has today withdrawn the offer which would have seen around £1000 forwarded to each with-profits policy holder in these very difficult economic times. The company has claimed that falling stock market valuat...Read More
Simple ways to save money : Insurance
While we have seen various reports over the last few weeks of people deciding against renewing their home insurance, car insurance and other insurance policies, there are obvious risks with this particular strategy - not to mention possible legal implications. However, there are many ways to reduce your insurance premiums which will only take a few moments of your time.
It is well-k...