Kaftans and the point-of-sale insurance market

Wednesday 13th January 2010

By Steve Devine, business development manager at IGI insurance Company and chairman of Protect - the Association of UK Creditor Insurers

Thank God - I did it. I managed to squeeze into a suit for a business meeting. I had visions of having to walk around in public in a Kaftan looking like Demis Roussos (a big fat Greek singer). The long lay off and extended Christmas holiday have ensured that there's now far more of me than ever. I have already popped four buttons on two coats. If I had left it any longer I would have to suffer the ultimate humiliation, my wife taking me shopping to buy some larger suits. Retail hell at its hottest.
 
Its been difficult getting back into the work routine but not as difficult as not playing golf at the weekends. My new Ping G15 driver rests untried in my bag waiting to launch me towards golf heaven. Hopefully this week I will unleash the new beast.
 
But on a work note, I see that the FSA's Moneymadeclear initiative has reached its procurement stage. It’s being rolled out in Spring 2010. If anyone wants to be a part time or full time money guide there are jobs available paying between £25 - 40, 000.

There are also opportunities for companies that want to help provide the money guidance programme, or its process, to the public. All the details are on the FSA website. I think there could be some good opportunities there for those that can pass on their knowledge and expertise to the general public.

I also made my individual submission to the Competition Commissions PPI remittal. Personally I don't think the point of sale ban will
be an effective remedy to help create competition in the market. It’s more likely to kill the traditional PPI market. The regulators main beef has always been about the profits/commissions made from selling PPI.

The market, however, has essentially moved on anyway towards providing standalone short-term protection products, the bulk of which would appear to be currently actively competing against each other. The danger of imposing a point of sale ban is if it’s applied as a precedent or read across to affect other product sectors where there are combined primary products and secondary insurance sales.
 
It would appear from the CC's administrative timetable on the website that a final decision on the remedies is due in the summer this year with further consideration of remedies and consultation on the draft order in the Autumn. So yet another year will have slipped by before the bitter-enders finally get to know what's happening to the PPI market.
 
If you want to know more about this I would recommend going to the infoline PPI & Protection conference at the Hatton Centre, London on 27th January. (I am chairing it) or come to our next Protect meeting on 29th January at the Marriott Marble Arch Hotel, George St, London.
Contact me for details on stevetdevine@gmail.com or Mo: 07870 909105

Steve Devine is business development manager at IGI insurance Company and chairs Protect - the Association of UK Creditor Insurers
Steve joined IGI this year from Cardif Pinnacle (formerly Pinnacle Insurance) where he spent 15 years, the last seven as the head of group corporate communications. Before that he was head of general insurance with Hambro Countrywide, the estate agency group.
Steve is married with four children and as a long-suffering West Ham fan he has learned to cope with difficult and extended lean times.