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.
Home insurance prices fall
29/01/2015 Buildings and contents insurance prices have fallen over the last year, according to the Association of British Insurers (ABI). The ABI tracked the price paid for household buildings, contents and combined insurance, and found that insurance premiums have been driven down by competition over the last year, despite heavy flooding through much of the UK. For buildings insurance,...Read More
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
FCO launches new travel insurance campaign
14/08/2015 The Foreign & Commonwealth Office (FCO) has warned holidaymakers against travelling without purchasing the correct travel insurance first. Going away on holiday without insurance, or a “Getaway Gamble”, can end up costing the traveller thousands of pounds if something goes wrong. Recent data from The Association of British Insurers revealed the average travel insurance medica...Read More
Car Insurance “11pc cheaper than a Year ago”
New research has suggested that motorists are experiencing car insurance renewal prices that are 11pc lower than this time last year, as the insurance industry succumbs to increased competition between insurers. Many companies throughout 2012 have adopted the strategy of offering new customers reduced rates in the hope to secure their money, while hiking the renewal prices of their current custome...Read More
Aviva quick to reassure the market about its finances
Insurance giant Aviva has been quick to reassure the stock market that its finances are in order and there is a more than sufficient cash buffer between its current asset and it liabilities. The move came as the group announced increased sales but took a hit on assets on the back of the recent stock market falls. While it is reassuring in some ways to see the group step forward with figures to c...Read More