12 April 2007
The insurance industry has taken a proactive approach to improve the selling of Payment Protection Insurance (PPI) to consumers, according to the Association of British Insurers (ABI).
In January, the Financial Services Authority (FSA) revealed it would be aiming to improve the standards involved with selling the insurance often taken out on products such as personal loans.
But Malcolm Tarling, spokesperson for the ABI, insisted PPI was "improving over a period of time" and that it wasn't "just down to the recent FSA announcement".
"The industry has been working very proactively and with a regulator... over the last 18 months to better improve the way in which consumers understand the product," he explained.
He added that the work being carried out by the insurance industry included making sure consumers understood what PPI was, what it would provide them with, what it wouldn't provide them with, and whether or not they should consider buying it.
The FSA's current involvement with PPI follows previous phases of work carried out in 2005 and 2006.
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