Abstract
Introduction
This brief analyses the Competition Commission' s remedies for the PPI market
and discusses the effects on penetration rates and the size and structure of
the market. Drawing on the results of interviews with industry executives, the
brief also looks at the potential for increased advertising, direct insurance
propositions and the introduction of more short-term IP products to the market.
Scope of this research
- Insight into the effect of the Competition Commission' s remedies on the
penetration rates of PLPPI, FMPPI and CCPPI.
- Forecasts of the size of the PPI market between 2009 and 2013 under an
optimistic, neutral and pessimistic scenario.
- Executives views on advertising, the potential of outbound telemarketing
and the emergence of direct insurance propositions.
Research and analysis highlights
A strategy that could be more successful in mitigating a potential fall in
penetration rates is to encourage consumers to phone the lender or visit the
lender' s website on the day following the credit sale as the distributor or
intermediary arranging the credit can sell PPI over the Internet or telephone
after 24 hours.
A number of executives suggested that penetration rates of PLPPI could halve
in 2011, following the point-of-sale prohibition. Therefore, Datamonitor would
suggest that this potential fall in PLPPI penetration rates is the key threat
to distributors' and insurers' incomes in 2011 and is the area where it is
most important to find solutions.
Key reasons to purchase this research
- Understand the remedies that the Competition Commission will impose on the
market and how they are intended to address the competition issues.
- Assess the future size of the PPI market by product line under an
optimistic, neutral and pessimistic scenario for future penetration rates.
- Understand how the market may change in terms of advertising; direct
insurance propositions and the products on offer.
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