Biba launches payment protection insurance despite concerns
THE FINANCIAL ADVISER - 15TH FEBRUARY 2007
The British Insurance and Investment Brokers Association has launched a number of payment protection insurance products, despite a major investigation by the FSA into distribution of the product.
The payment protection insurance offerings cover loan, income and mortgages, and include partial cover for often overlooked conditions, including stress, back-related and pre-existing conditions, with the incentive of lower premiums.
British Insurance, which will provide Biba with the cover, will also be on hand to offer the group guidance over regulation and marketing matters.
Eric Galbraith, chief executive officer of Biba, said: “We can all see that the distribution landscape for payment protection insurance is changing, many existing providers continue to be challenged by the regulator and the media to improve their sales processes, cover and cost.
“This recent attention has shaken consumer confidence in buying payment protection insurance from non-broker channels and the time is right for brokers to seize their market share.”
The FSA has stressed its commitment to clamping down on payment protection insurance mis-selling, announcing that it plans a number of fines in the coming weeks.
Nigel Spiers, chief executive of Rhyl-based IFA Buckles Investment Services, said: “I think people will trust the sale of payment protection insurance more if it is being sold by IFAs and I would welcome more honest brokers into the market. It has been our friends at the big banks who have really given payment protection insurance a bad name.”
