Letter of the month - PPI paralysis: but at least BIBA is doing something positive

As providers of payment protection insurance continue to face pressure from consumer groups and regulators, it is interesting to see how the relevant trade associations are tackling the various issues raised by the Citizens' Advice Bureau, Office of Fair Trading, Financial Services Authority and Defaqto.

The FSA has given the trade associations until 17 March to 'get their house in order' and introduce self-correcting voluntary measures. So it comes as no surprise to hear news of cross-industry forums and proposed reviews of baseline specifications.

While chief execs and their members ponder over what measures to take, there's some welcome straight-talking from BIBA, which has called for single premiums to be abolished.

BIBA is one of the few trade associations to stick its head above the parapet and actually do something tangible.

Not only is it tackling the single premium issue by asking for it to be outlawed, but it is working to shift the blame from our industry to the lenders who created this debacle.

I applaud the recent comments of the association's chief, Eric Galbraith: "This is not an insurance problem and there's nothing wrong with PPI itself. The worst abuse of this product has been at the hands of the lenders who sell PPI and in many cases also design the product."

I am equally delighted that BIBA has sent an email to its members encouraging them to sell PPI cover. More providers will certainly break the High Street monopoly and change the perceptions of this product.

Trade associations only have a small window of opportunity - until 17 March - to demonstrate they're taking corrective action. At the moment, it looks to me that BIBA is the only trade body tackling these issues head-on.

Simon Burgess, Managing director, British Insurance Ltd.