Single premium payment protection insurance policies are bad value and should be outlawed as part of a clean up of the PPI industry, according to the British Insurance Broker's Association (BIBA).
BIBA is urging the PPI industry to switch to monthly premiums, saying they offer more choice and control for consumers and should be cheaper. It wants more competition in the £5bn a year market as well as a drive to inform consumers they can buy PPI independently and do not have to take the cover on offer from their loan company. There are currently an estimated 20 million PPI policies in force, with most sold by banks, building societies, credit card firms and other financial institutions. The policies are designed to meet loan repayments should a borrower fall ill or lose their job....
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