A quarrel has erupted between the Association of British Insurers (ABI) and the FSA over the future of payment protection insurance (PPI), following comments made by the regulator that firms "may wish" to stop selling PPI .
According to the ABI, the insurance remains the only financial product that will cover joblessness in a time of growing unemployment and over-indebtedness. The FSA recently published an incriminating update on its thematic review into the sale of PPI which recommended that given the continuing problems in the sales of this product, firms should consider cutting its sales forever.
However, Nick Starling, director of general insurance and health, said: "With increasing unemployment and over-indebtedness, it is essential that people protect themselves against losing their regular income. PPI is the only financial product that covers unemployment."
Jon Pain, managing director of the FSA’s Retail Markets, commented that tackling poor PPI sales practices would remain a high priority for the FSA in order to ensure that consumers were protected.
Association of British Insurers defends PPI following FSA attack
Financial Services > Income lnsurance > News
Association of British Insurers defends PPI following FSA attack
Thu, 02 Oct 2008
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