One third of insurance claims in H1 related to the bank
Lloyds Banking Group accounted for 35% of insurance complaints to the ombudsman in the first half of 2010, the bulk of which relate to alleged mis-selling of payment protection insurance (PPI), according to Credit Suisse.
A note on Lloyds by banking analyst Jonathan Pierce, published this week, said: “The latest data from the ombudsman suggests that the bank [Lloyds] accounted for 35% of all complaints about insurance products - of which PPI complaints are the substantial majority - in H1 2010.”
Pierce estimated that the bank faces having to pay up to £1bn of compensation to customers who have complained about mis-selling. Lloyds declined to comment.
The Insurance Times Fair Fees campaign is fighting to reverse the hike in the Financial Service Compensation Scheme levy, which is fuelled by PPI claims.