Broker opportunity in PPI reforms

Brokers can capitalise on the Competition Commission’s proposal to ban point-of-sale payment protection insurance, claims Paymentcare.co.uk.

The online insurance provider says brokers can use the recent PPI reforms to their advantage to sell their clients a more competitively priced protection product than has previously been offered on the high street.

Paymentcare.co.uk has compared the cost of an Abbey PPI product versus the price of its own standalone policy.

It found that to protect a £10,000 personal loan with Abbey over five years at 7.9% would add up to an additional £3,084.60 over the term of the loan.

The same standalone policy from Paymentcare.co.uk works out at £717.60, a saving of £2,367.

Shane Craig, managing director of Paymentcare.co.uk, says: “A huge amount of available custom will be released to the market when the changes come into effect.

“Brokers are in a strong position to make the most of this chance to repair battered business levels.”