Almost 30% of people who have cancelled or are considering cancelling their payment protection insurance would consider buying a replacement policy, research by Capita has revealed.
Despite the negative publicity surrounding the product, many loan customers would consider buying the product again in the future.
In addition 49% of respondents said that they were happy with their current PPI policies.
However, the findings also revealed that more than 25% considered the product a luxury rather than an essential purchase.
Commenting on the study, Brian Lindley, insurance solutions manager at Capita Insurance Services, said: "Historically, many customers have decided not to take up this type of cover and believe it isn't essential. However, this survey shows that even though we cannot escape reports which suggest that trust in this market place has been lost recently, there is still an appetite from customers to purchase a replacement product that is fully compliant with new regulations."
He added: "We have a responsibility to ensure customers are still adequately protected especially during this continued period of economic uncertainty and that, in future, consumers are offered a wider choice of products that best suit their needs. To ensure satisfactory cover, replacement products will need to be driven by the customer's requirements rather than the industry.
"This has the potential to create a very competitive market for all involved which in turn would generate great value for money for customers. All insurers need to work with customers and banks alike to develop an appropriate offering to drive the market forward."
