The Association of British Insurers (ABI) and their members should stop trying to defend a poorly performing over-priced product - payment protection insurance (PPI)- and discontinue it.
That’s the view of Pioneer Friendly chief executive Andy Chapman who argues that the product is poor value, has an unenviable record of not paying out on claims, and benefits banks more than consumers; “The ABI aren’t doing enough to get rid of PPI for good. It is a product that’s not really fit for purpose.”
Chapman argues that only the wider income protection (IP) should be sold as it is a far more valuable product, particularly because it covers consumers until retirement, way beyond the standard two year PPI policy.
Income protection insurance: News update: August 2008