Barclays Move Will Boost Consumer Confidence in PPI Says British Insurance

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News that Barclays is to settle its backlog of PPI mis-selling complaints without question shows High Street providers are willing to put right their mistakes of the past and take a more responsible approach to future sales. Nel Mooy, Managing Director of independent PPI provider, British Insurance, believes Barclays latest move can only boost consumer confidence in a product that provides a financial lifeline when an income is lost.

British Insurance says 86% of workers do not have PPI* because they either do not know what it is, or if they do, think it’s too expensive, don’t like it, can’t afford it or believe they have enough to cover household expenses.

Their perceptions, says Nel, are due to not having been given the right information in the first place; 42% are unsure what PPI does (up from 37% six months earlier) *, whilst those who are familiar with the cover, cite cost as the main reason for ignoring it.

Yet, a 30 year-old requiring £1000 a month in benefits to meet a range of bills, such as rent, utility and council tax, will pay £24.60 a month with British Insurance, when opting for a 60 day excess**. In Nel’s opinion, a monthly payment of £1000 for up to a year, as opposed to receiving the weekly Jobseeker’s Allowance*** of £67.50 is a ‘no brainer’.

She comments: “People cannot be expected to run their homes on the weekly State handout, which is why PPI has such an important role to play. Only this month it was reported the numbers claiming JSA reached a 2011 high of 1.49 million.***

“Many consumers do not trust providers of PPI because of its reputation – yet when properly sold, can make the difference between effectively managing your finances - during what is considered a stressful time - and spiralling into debt.”

British Insurance’s research also found respondents’ top sources of ‘replacement income’ were; savings, the family, the State and credit cards.*

Nel concludes: “Hopefully, the 55%* of people who are worried about losing their job will now have more confidence in the PPI sales process. Barclays and other High Street providers know they have to rebuild confidence in this much-maligned product and I’m hopeful their actions will encourage more consumers to consider PPI, shop around for cover and put in place a more robust mechanism to counter debt.”

To view its product range visit http://www.britishinsurance.com

British Insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.

Note to Editors

  • Survey undertaken by TNS Omnibus- 665 16-64 year-old full or part-time workers were questioned online from 5 – 7 April 2011.

** Quote from British Insurance on 20th June 2011

***Direct.gov.uk Jobseeker’s Allowance for those aged 25 and over – paid fortnightly.

British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance.

British Insurance has a Linked In profile at http://www.linkedin.com/company/british-insurance

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Emma Andrews
British Insurance
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Francesca Breeze

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