Steve Devine: Blog

Friday 2nd December 2011

Hi folks, I had no luck with my dinner jacket plea, unfortunately. Does anyone read this blog? If so, please reveal yourselves (in the decent way, of course!).

However, I do have news of a more positive nature.

I am pleased to report that Exeter Family Friendly went one better than a highly commended at the Cover Awards, and won best individual IP provider at the Health Insurance Awards. Well done indeed on rounding off a splendid year for Devon’s finest.

Protect’s last meeting of 2011 went really well too, when nearly 60 attendees enjoyed a great line-up of speakers and a fabulous Lebanese themed lunch.

I must also mention the Hammers that big Sam has hauled up into second place in the Championship. Please keep it going, boys: onwards and upwards!

I would bring your attention to a current FSA guidance consultation on payment protection products. It’s an FSA/OFT joint document, including FSA product risk report and OFT guidance.

The consultation summary says: “The FSA and the OFT are jointly consulting on proposed guidance to firms in relation to payment protection products.

“This document is the result of joint working by both organisations in the light of recent developments on payment protection insurance (PPI) and emerging concerns about new products and practices. Comments are invited by January 13.”

That is not very far away when you factor in the Christmas holidays!

The document’s scope focuses on products or product features which are designed to offer consumers short-term protection in case of loss of income, by providing the means for them to meet their financial obligations including repayments under a regulated mortgage contract or a credit agreement.

The protection will typically be triggered by specific life events such as accident, sickness and/or unemployment, although other risks may be covered.

Protect has already met with officials from the FSA’s Conduct Specialists department earlier this month. The FSA and OFT have arranged two workshops for those interested, (£20 entry fee) on December12 in Leeds and December 13 in London.

I would urge everyone that’s interested in PPI, short-term income protection insurance, debt waiver, and indeed protection insurance and insurance generally, to read and respond to the consultation guidance, and attend the workshops.

This is the FSA’s approach to product intervention, and can anyone say that there will never be an FSA product risk report in their product sector?

You and I know that ‘never’ is just around the corner!

Take care.

* Steve Devine is chairman of Protect, an association of companies and individuals working in the UK protection markets

steve@devineconnections.co.uk