Following the FSA's warnings over Payment Protection Insurance (PPI), almost one in three new mortgage borrowers say they felt pressurised into buying an associated insurance product, according to market research company, Capital Blue.
A 2-year study revealed numerous problems in the sale of associated insurance sales linked to mortgages, an industry estimated to be worth £5.5bn per year.
Capital Blue surveyed over 15,000 people who had recently completed mortgages and asked if they felt pressurised into buying additional protection products.
The survey found 31% of respondents felt pressurised into buying at least one ancillary product.
Building insurance was the product that was most likely to be sold under pressure, with 17% of respondents claiming they felt pressurised into buying. Pressure to buy life insurance was reported by 14% of respondents, while 13% say they felt pressurised into buying contents insurance. Pressure to buy was lowest on PPI, with 11% reporting a pressurised sale.
Capital Blue says the FSA should be aware of pressurised sales in the insurance industry, particularly as margins in financial services are currently tight, meaning sales of additional products are likely to be encouraged.
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