But Capita research says many view product as a luxury
Nearly 30% of loan customers who have cancelled, or are considering cancelling their payment protection insurance (PPI), would consider purchasing a replacement policy, according to a new survey.
The research, conducted on behalf of Capita Insurance Services, also showed that in spite of the bad press the product has received over recent years, 49% of those who had purchased PPI when arranging a new loan, mortgage, credit card or retail agreement stated they were happy with their policy
But more than a quarter of those questioned believe that cover such as this is a luxury rather than essential.
The research looked at how many people had purchased protection, how satisfied they were with the product and whether they considered it essential.
Capita Insurance Services insurance solutions manager Brian Lindley said: “Historically, many customers have decided not to take up this type of cover and believe it isn’t essential. However, this survey shows that even though we cannot escape reports which suggest that trust in this market place has been lost recently, there is still an appetite from customers to purchase a replacement product that is fully compliant with new regulations.”
“We have a responsibility to ensure customers are still adequately protected especially during this continued period of economic uncertainty and that, in future, consumers are offered a wider choice of products that best suit their needs. To ensure satisfactory cover, replacement products will need to be driven by the customer’s requirements rather than the industry.
“This has the potential to create a very competitive market for all involved which in turn would generate great value for money for customers. All insurers need to work with customers and banks alike to develop an appropriate offering to drive the market forward.”
