In the light of public concerns expressed about selling practices for Payment Protection Insurance (PPI), the CII will re-launch an enhanced learning package for practitioners offering this insurance at the beginning of 2006.
Although PPI can provide appropriate and needed cover for customers against unexpected changes in personal circumstances, for some sales a professional level of customer care has been lacking. Examples are poor disclosure of product and price details, failure to match customer circumstances to policy provisions, failure to assess the effect of the additional cost of the insurance on the ability to repay credit liabilities.
Earlier this year the FSA carried out a series of visits to look at PPI selling practices in a range of firms. Speaking at the CII Conference Clive Briault, FSA managing director for retail markets outlined the results, "Some firms demonstrated good compliance with our rules…however, selling practices in other sectors were very poor." Similarly, the Citizens’ Advice Bureaux and Which? have also highlighted their concerns.
PPI has significant take-up by the public — at least 20 million live policies, half a million claims per year and an annual premium income of £5.6 billion, it is also sold across a wide range of market sectors including insurers, banks, building societies, credit card companies and unsecured lenders - so the need for good practice is clear.
A new CII learning package providing online assessment of knowledge of PPI will be available from early 2006 covering the following topics:
* The PPI marketplace
* Cover provided
* PPI products
* Claims issues
* Cancellation and refunds
* FSA Regulation
* Demands and Needs (suitability)
* Other influences on the PPI Market
Commenting on the new learning package, CII director general Dr Alexander Scott said, ‘The CII’s mission is to engender trust and confidence on the part of the public. Our approach, which complements that of the regulator, is to raise standards of knowledge and conduct.
"Our new learning package is a contribution to redressing failures in the standards of disclosure and selling practices for PPI. We advocate that all practitioners in this field make use of it. In particular, the managements of authorised firms should ensure a re-assessment of those engaged in selling PPI, using the CII learning solution, to help respond to public concern."
In an update on PPI issued this month the FSA calls on the industry to improve sales practices urgently, stating that training and competence of sales staff was not adequate in around half of the firms visited.
