Payment Protection takes another knock
The announcement is a blow to the confidence of PPIprovidersas they are already under scrutiny fromconsumer bodiesand the FSA and now they have to face increased nervousness from their insurers.
Simon Burgess,managing director of britishinsurance.com, said: "Where PI is concerned, it's a claim waiting to happen. Mortgage brokers and lenders are breaching their duty of care towards their clients and it's only a matter of time beforemis-selling claims are made.Thiswill affect an insurer's bottom line and I'm surprised thatPI specialistshave waited until now to review their liabilities."
