Brian Lindley explores the PPI marketplace, consumer attitudes and what may help regain their trust
Put the customer first
There are, however, some alternative products that could be seen as a way of circumnavigating the new guidelines for the PPI market. It is important that we don’t see the re-occurrence of the mis-selling issues and an imbalance between the benefit of claiming and the cost of the policy.
In an age where consumers can compare insurance policies for their cars, homes and pets online, it should be a natural progression that the same level of choice is made available when it comes to PPI. This would ultimately create a healthy, competitive market and generate genuine value for money for customers.
The industry should now be considering working more closely with customers to develop an appropriate offering and drive the market forward. The market could also benefit from innovation in the form of insurance distributors and providers.
It should, however, be noted that investment is required in order for new products to be developed and marketed, and for changes to be made to the sales processes.
However, with the market in turmoil, is this investment shrewd? The current situation can be likened to that of being in a bank robbery. When the robber walks in, do you run, hide or tackle him to the ground? In making your decision, do you think about yourself or others around you? Not only that, but is the action you take the correct one?
Whether you believe that the negativity generated around this market is justified or not, no one can get away from the fact that from this point onwards, it needs to put the customer first.
Consumers can often be overlooked in the development of products. Ensuring this doesn’t happen could be the answer to guaranteeing that the market strengthens and stabilises. It could also mean that consumers themselves genuinely feel supported and protected.
It may still be too early to tell, but there certainly exists some scope to develop alternative products which may see an invigorated PPI market emerge in 2011.
Brian Lindley is head of insurance solutions at Capita Insurance Services
