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.
Quinn Insurance announces 900 job losses
The administrators for Quinn Insurance have today announced 900 job losses and confirmed that the Quinn Insurance is officially now up for sale. This is the next stage in a long-running saga involving parent group Quinn Group, which is owned by one of Ireland's wealthiest businessmen, Sean Quinn. The regulators became involved with regards to Quinn Insurance a few weeks ago and effectively closed...Read More
UK insurers may need to raise £70 billion
As we near the introduction of the EU solvency II directive in 2012 the battle lines are certainly been drawn with the Association of British Insurers today suggesting that UK insurance companies may need to raise as much as £70 billion in the short term to cover the new regulations. The regulations, expected to become law in 2012, would require a total recapitalisation of the insurance sector in...Read More
What is happening at AIG?
While AIG has a number of businesses which are still trading profitably and will no doubt be sold off if the group does go under, its venture into the loan package market and sub-prime sector has been the downfall of this great giant (even if it survives it will be a different animal from the one only a few weeks ago). So what exactly happened?
Not only did AIG get involved in buyi...
RBS looks for alternative to government debt insurance scheme
The Royal Bank of Scotland has today suggested it will look for alternatives to the UK government's asset protection scheme in which the bank has agreed to inject £370 billion worth of loans for a fee of £19.5 billion. The idea is that these particular assets will be ring fenced and a line drawn under their potential losses in the short, medium and longer term. However, the £19.5 billion premiu...Read More
Is pet insurance a luxury or a necessity?
The UK has long been renowned as a lover of animals with dogs and cats the more popular family pets. As a consequence the last decade has seen a substantial increase in the pet insurance market at a time when veterinary costs continue to rise at a faster rate than many people's income. However there is some confusion as to whether pet insurance is actually a luxury or a necessity for pet owners of...Read More