The Insurance Ombudsman and payment protection insurance

Personal general insurance policies are not subject to statutory regulation. There is instead a system of voluntary self‐regulation and the question arises as to the effectiveness of this regime. This paper explores that issue in relation to payment protection insurance (PPI) and suggests, on the basis of complaints coming before the Insurance Ombudsman Bureau, that the consumer may still be inadequately protected. The paper acknowledges the work of the Association of British Insurers' (ABI) Code Monitoring Committee and the likely effect of the June 1996 statement by the ABI on payment protection insurance but suggests that because of the way PPI is sold it is unlikely that there can ever be full protection for the consumer. This, it is suggested, makes the role of the Ombudsman as an adjudicator in default all the more important. Equally important is the need for the industry and the bureau itself to publicise the service which it offers.