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.
Car insurance braking or speeding ahead
While the latest figures from the AA show that car insurance is at an all-time high, statistics from Insurancewide website show that car insurance premiums have dropped this quarter.AA Insurance says that over the past quarter car insurance premiums have risen by 2.5 per cent, while figures released by Insurancewide indicate that in the last three months, comprehensive car insurance costs 4.6 per...Read More
Lloyds bank insurance scheme fails FSA stress test
Lloyds bank has been dealt a bitter blow today with news that the company's proposal to sidestep the UK government's toxic debt insurance scheme has been rejected by the Financial Services Authority (FSA) on the grounds that the company could not raise sufficient capital to withstand potentially escalating bad debts. Lloyds bank has for some weeks now been contemplating a £15 billion rights issue...Read More
Older people face insurance prejudice, says charity
Many older people who are healthy and want to travel are "frequently shown the door by ageist travel insurers" who will not cover provide them with cover, a spokesperson for the charity Age Concern has said. According to Age Concern, as many as 92 per cent of travel insurance policies impose upper age limits on who they will cover, and up to a third of people report having experienced age discrimi...Read More
MPs Call For Changes To Use Of Insurance Surpluses
While it has been a bone of contention for many years it seems as though the subject of so called orphan funds may soon be cleared up with news that MPs are set to press the FSA to introduce strict new guidelines. Orphan funds are basically funds which have been set aside to smooth the natural economic cycle of returns and cover any claims. Many UK insurers now have funds in the billions of poun...Read More
UK government announces £20 billion loan insurance package
As we suggested yesterday, the UK government has today revealed plans for a £20 billion loan insurance package for small businesses. The move will see the government effectively guarantee loans to businesses, from the banks, which will take away the risk of default on the side of UK banks. However, interestingly the scheme has received mixed approval in the marketplace with many suggesting it is...Read More