Competition Commission: Little competition in retail PPI

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Competition Commission: Little competition in retail PPI

Mon 13th Oct 2008

Retail payment protection insurance (PPI) is a sector with little competition and with limited options for customers, according to the Competition Commission (CC).
The provisional findings of a study into retail PPI, part of the general PPI market, are that customers are hindered in finding alternatives and switching products.
There is also a "considerable point-of-sale advantage for the providers" and customers suffer from product complexity and the way in which information is given to them.
The CC's suggestions to remedy the situation include making providers offer PPI and merchandise cover separately.
Finance website Moneysupermarket.com said the report had come at a "crucial time".
It said that while retail PPI would seem attractive to people purchasing items through a credit retail account, there remains confusion and a lack of competition, as with other PPI products.
"There's a clear need for standalone products and advice for buyers," it stated, criticising "restrictive policy small print and bundling with other products".

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