Over three-quarters of payment protection policyholders are satisfied with their cover, according to the ABI.

In its latest benchmarking study the ABI found that 87% of loan and mortgage payment protection customers were satisfied with the way their claim was handled.

90% of loan and mortgage payment protection customers said their claim had been treated fairly and 77% said they were happy with the level of information received during their claim.

ABI payment protection claims Committee chairman, Roger Alexander, said: "The acid test for most customers is when they come to claim. These results show high levels of satisfaction and, because they are consistent with last year's results, we know we have good track record.

"The industry has, and will continue to focus on communication and consistency to ensure that customers understand what the product offers and what they are buying. We would expect to see the developments already in train bear fruit in next year's study."

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