The Competition Commission's investigation into payment protection insurance should reflect two important points.

First, initiatives are already being taken by the insurance industry, in collaboration with other bodies, to improve service to customers and their ability to shop around for the product that meets their needs.

These include a consumer guide on the protection that PPI does, and does not, provide (published shortly and distributed through advisers such as the Citizens Advice Bureau and lenders) and also changes to ensure premium refunds on cancellation.

Second, PPI can play an important role in protecting loan payments.

As the FSA has said, when properly sold, this insurance provides valuable protection to many people.

Only a minority of loans currently have PPI protection associated with them and this gap could grow if the wrong regulatory measures are introduced. This would leave many borrowers dangerously exposed in any economic downturn.

The ABI is committed to enabling better informed customers take advantage of a competitive market. We are continuing our work to achieve this while the Commission carries out its investigations.

Jane Milne, Head of property and creditor, ABI