For over four years, PPI providers have been scrutinised, berated and accused of failing consumers when they need their support most. The actions of a few have tarred the reputation of many, making it even harder to convince consumers of the benefits of a product, that in times of hardship, will provide an invaluable financial-prop.
It’s no surprise to find players in the financial services sector growing weary of this ongoing debacle and turning their backs on PPI. Historically, the same can be said of consumers who lost confidence in providers, fearful they would be mis-sold a policy they will never be able to claim upon.
However, the tide is turning and now is the time to put right the wrong doings of others and repair that tattered reputation. Brokers have a social responsibility to provide consumers in these recession-hit times with the tools to allow them to continue paying their bills should accident, sickness or redundancy occur.
Rising unemployment, increased long-term sickness and spiralling debt levels are clear indicators of the need for PPI. Demand for this product is now growing – hence the actions of some firms who are either refusing to provide unemployment-only cover or are increasing their premiums by up to 40%.
Brokers must step in and redress this imbalance. Increasing consumer demand creates greater opportunities for sales, especially as brokers are more trusted. In 2007, the CML confirmed intermediaries had a key role to play in the provision of PPI and Competition Commission research shows consumers are more likely to trust a firm that isn’t linked to the provision of credit. The FOS also points out that the majority of its complaints are from consumers who bought policies from lenders.
So what’s the barrier? Brokers reputationally have a clean bill of health and product demand is there. Not only can brokers enhance the industry’s poor reputation, they can safeguard consumers from falling further into debt. It might even allow them to make a decent living.
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