In its 2010 Financial Risk Outlook report, the Financial Services Authority (FSA) notes that banks are responding to today’s pressures by increased diversification into products and services that generate fee income, possibly at the customer’s expense.
One example where the regulator sees the potential for consumer detriment is packaged accounts that may offer value for money for some consumers, but they may not benefit all.
Such accounts sometimes include travel insurance cover and the FSA points out that in some cases, consumers could be better off purchasing cover individually, or not at all.
Furthermore, where banks offer add-ons in the form of insurance products, they do not necessarily provide the expected level of cover.
Travel insurance: News update: 16 March 2010
