Swan says rules will rebuild confidence in product
Jubilee has welcomed the joint FSA and Office of Fair Trading (OFT) guidance on payment protection insurance (PPI) products as an important step towards rebuilding consumer confidence in PPI.
The guidance, published in late January, is designed to prevent another mis-selling scandal like the one that enveloped PPI.
Jubilee Syndicate 5820 senior mortgage underwriter David Swan said: “The past PPI mis-selling scandal has had a huge impact upon the public perception of the product and has led to many distributors withdrawing completely from offering any insurance protection on mortgages or other financial commitments.
“It is now time for providers to look forward with products and sales methods that will rebuild the confidence of consumers and regulators alike. This joint FSA and OFT guidance paper can only help distributors and insurers move forward with confidence.”
In a statement, Jubilee praised the FSA and OFT’s focus on making sure the right products are sold to the right target market.
Swan added: “In our view, this need to understand the target customers when designing product terms and features is not just a requirement for compliance but makes commercial sense.
“Firms need to recognise that this is not just a requirement at product design stage but needs to be measured reviewed by the insurer and distributor throughout the product’s lifespan to ensure it is achieving the correct consumer outcomes.”
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