Limited competition in retail payment protection insurance
Wed, 15 Oct 2008
The sector of retail payment protection insurance (PPI) is an area with little competition and with limited options for customers, says the Competition Commission (CC).

A study into retail PPI, part of the general PPI market, has so far revealed that customers are hampered in finding alternatives and switching products. The study also found that there is a "considerable point-of-sale advantage for the providers" and that customers are subject to product complexity and the way in which information is given to them.

As a solution to the situation, the CC has suggested that providers offer PPI and merchandise cover separately. According to Moneysupermarket.com, the finance website, the report has come at a crucial time. It says that while people purchasing items through a credit retail account would find retail PPI attractive, confusion and a lack of competition still exists, as with other PPI products.

Moneysupermarket.com said: "There's a clear need for standalone products and advice for buyers." It also criticised "restrictive policy small print and bundling with other products".
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