General Insurance Article - Massive hike in PPI is only the tip of the iceberg


 Paul Clark, CEO of Charter UK, a leading adviser to the banks on handling complaints, comments on the fact that complaints to the UK's Financial Ombudsman Service leapt 26% in 2010/2011 - driven by customers who felt they had been miss-sold PPI.
  
 PPI is a massive part of this hike and this is arguably the most publicised complaints saga, driven by the media and Claims Management Companies . I think however that what we are seeing is the tip of the iceberg and next year is likely to be another record year. Considering that this 26% does not take into account the potential for millions of so far  ‘unvoiced’  PPI complaints, we could  see this figure doubling  over the next year. Much of it depends on how  banks move to remediate there PPI complaints. Key to this will be the processes and audit trails they have  in place to manage and investigate those complaints . Therefore once again it will be the banks that will determine what rise in complaints the UK’s Financial Ombudsman Service will release next year.
  
 For the banks, PPI is a long term problem, one which will take years to deal with. Yet given the furore surrounding PPI, the increase the Financial Ombudsman has seen isn’t really news. What people need to now be looking at is what approach the FSA will take on regulation as a whole. I am interested to find out what the Bank of England/FSA conference tomorrow will reveal when the authorities release their paper ‘'The Bank of England, Prudential regulation Authority - Our approach to banking supervision'. It is clear that complaints handling and complaints furore are a long way from being over.

Back to Index


Similar News to this Story

EU comprehensive AI Act includes obligations for employers
A major European regulation imposing strict rules on AI activities that pose high and unacceptable risks, including those deployed in the workplace, i
LMA calls for combined approach to cyber exposure management
The Lloyd’s Market Association (LMA) has today released Practical Management of Cyber Exposures and Aggregations, a best practice document on the mana
Car insurance premiums fall by 17 percent in last 12 months
Motorists are now on average paying £777, which is £164 less than one year ago, with easing claims inflation and frequency contributing to this trend.

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.