Retail PPI sector ''should make improvements'', commission says

By MoneyhighStreet Staff. Published on October 10, 2008 This post currently has no comments.

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Initial findings of the Competition Commission''s investigation into retail payment protection insurance (PPI) have been released.

The organisation said that providers of the cover needed to make improvements to their sales.

Earlier in the year, the commission said that similar improvements needed to be made to the PPI sector as a whole, but that it needed more time to investigate retail PPI.

The insurance is commonly sold alongside loans and is designed to help cover repayments if the policyholder loses their job or suffers another sudden life change.

"As with other types of PPI policy, retail PPI is highly profitable for distributors, and there is little competition between providers on price and other factors, limited ability for customers to search for alternatives or switch products and a considerable point-of-sale advantage for the providers," the commission said.

Retail PPI is generally taken out by consumers buying products from home catalogues.