Working in conjunction with the Financial Sector Skills Council, the standards aim to impart higher levels of understanding and knowledge among those who sell insurance policies.
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As well as looking to improve the quality of knowledge of policy terms and the sales process, it also concentrates on explaining to the consumer how to claim on a policy.
Stephen Haddrill, director-general of the ABI, commented: “Insurers and lenders are determined that customers get the best possible deal from PPI. These latest initiatives build on steps already implemented by the industry, such as a commitment to giving refunds on single premium policies if cancelled early, and ensuring consistent interpretation in claims handling. As the Financial Services Authority has said, this insurance provides valuable protection when sold properly.”
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The ABI has also joined with lenders to create a guide to PPI for consumers, explaining what the product does and what they can do to ensure they get the right policy for their circumstances.
John Ford, director at Mustard Commercial Finance, said: “There are various stories about re-selling at high rates so I suspect this is a good thing. Rates can be very expensive for what they are and with standards the client can make a decision on insurance based on what they need and what they see.”
