Ian Clark – What next for PPI?
The press has been full of comment about the banks withdrawing their appeal over the FSA’s stance on PPI mis-selling. The banks have restarted their review of mis-selling cases and the industry is trying to quantify the overall bill.
But as yet there has been little focus on what may be one of the most significant run-offs the industry has seen.
From insurers to mortgage providers, a wide range of businesses has been involved in the point-of-sale distribution of PPI products. Here’s where the root cause of the problem lies.
Service levels must be kept up, yet most of the income will have been received a while ago and new business volumes have reverted to a trickle.
The question is who will administer PPI run-off and will it continue to lie with the current participants or with a new third party geared up to run-off books of PPI business? Volunteers, please?
Ian Clark is a partner in Deloitte’s insurance practice