PPI boosts provider profits 950% - study

A CC working paper into the profitability of PPI concludes providers made around 990% profit in 2004 and predicts a 982% profit this year, but adds these totals would be significantly reduced when costs are taken into consideration. The working paper, which examines mortgages, credit cards and personal loans, is part of ongoing CC work into the nature of competition in the PPI arena. It describes the PPI distribution sector as “highly profitable” with “sizeable” profits and “high” commission levels based on a ‘Market Economics Model’. The PPI market has been the subject of controversy...