Assurant welcomes Office of Fair Trading’s study into PPI

Assurant Solutions has welcomed the news that the Office of Fair Trading is to carry out a market study to look in depth at the payment protection insurance sector.

Ian Moffatt, sales and marketing director at Assurant Solutions, says: For the past 12 months we have been encouraging everyone involved in the sector to create and sell products that provide consumers with protection solutions that are flexible, affordable and meet their individual needs. We believe that the work being undertaken by this and other organisations will serve to do just that, and drive forward the innovation needed to enhance the product offering to the consumer.

Assurant Solutions embarked on an extensive project at the end of 2004 to develop an unbundled range of mortgage payment protection and income replacement products. As a result of that work, it can now offer over a quarter of a million individually priced options, allowing its distributors to provide tailored protection solutions to their customers. The business took a further step forward in November this year, introducing age-banded Mortgage Payment Protection Insurance providing 216 cover options.

To address the issue surrounding the complexity of creating an individual solution to suit each customers personal circumstances, Assurant Solutions is in the final stages of building an electronic sales tool to help its distributors deliver such solutions. A pilot programme is due to be launched early in the New Year.

Moffatt adds: The PPI sector faces two choices – create highly flexible, affordable solutions supported by the right tools to ensure a compliant sales process, or simplify the product to the most basic level. Whatever choice an insurer, lender or intermediary makes the end result must be that the customer walks away happy in the knowledge that they know what theyve bought, what it will do, and satisfied with the price that they have paid.