Qualification is the PPI solution

There has been much debate over how the insurance industry, regulators and trade bodies should tackle the PPI debacle, its anti-competitive practices and flawed sales processes. While I applaud any initiatives to drive up standards, I am frustrated but not surprised that no tangible solutions are being put in place.

As a non-advised general insurance product, those selling PPI need only meet the FSA's training and competence requirements. There is nothing mandatory for PPI sales, so providers can educate and train as they see fit.

Those giving mortgage and investment advice require qualifications that are validated and approved by the Financial Services Skills Council, so why can we not do the same for PPI? Lenders' trade bodies are quick to point out that their members meet the FSSC's qualification criteria but, given there are no formal exams for PPI sales, how can they measure their members' competency in this area? There is no national benchmark.

The ABI says consumers need to be better informed about the policies they are buying but instead of relying on producing better point of sale material, should we not be focusing on the people who sell PPI?

We need a baseline standard qualification - it would ensure greater emphasis is placed on competency and skills, resulting in less mis-sold policies and a better reputation for us all.

Sara-Ann Burgess

Director,

britishinsurance.com

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