PPI underwriting

Discussion in 'SA3' started by Ppan13, Jul 14, 2021.

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  1. Ppan13

    Ppan13 Very Active Member

    In SA3 chapter 2, the core reading says that the Competition Commission's investigation order to prevent future mis-selling of PPIs include a requirement of "providing a personal quote" from 2011/2012 onwards.

    In the SP7 chapter 3 notes on PPI, it says "No allowance is made for the profile of the individual being covered" and in SA3 notes (ch2 p14) it also says "the insurance is not underwritten at the sales stage".

    What is the intended meaning, then, of there being a "personal" quote?

    Thanks.
     
    Last edited: Jul 14, 2021
    Ppan13, Jul 14, 2021
    #1
  2. Ian Senator

    Ian Senator ActEd Tutor Staff Member

    Ch2 p14 is still talking about the historical position (ie pre 2011/12), p15 talks about the changes due to the Competition Commission report. I haven't read the report myself, but I think the idea of a 'personal quote' is that the policyholder is given details of the cover, price etc, so that they're aware of the insurance cover and have the choice of whether to take it or not. I don't think they mean a 'price tailored to the individual'. Might be worth doing a bit of digging around to confirm this though, in case we need to get the Core Reading changed in future.
     
    Ian Senator, Jul 25, 2021
    #2
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  3. Ppan13

    Ppan13 Very Active Member

    Thank you; good suggestion. Having now looked at the Competition Commission report directly (I don't why I didn't think to do this originally!) , I think you are right that giving the (potential) insured a 'personal quote' refers more to the act of the specific and explicit quote process (ensuring it isn't "hidden" in any way by tied agents selling credit products) . Schedule 4 (p39 onwards) in the link below stipulates the form which the quotes must take, rather than the nature of the pricing behind reaching the premium. https://web.archive.org/web/2012011...pdf/PPI_Market_Investigation_Order_(2011).pdf
     
    Ppan13, Jul 26, 2021
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