The great British PPI truth and reconciliation scandal

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A case study of the payment protection insurance experience from the perspective of the consumer group that first published the Supercomplaint.

Recent years have seen much debate about consumer treatment in the general insurance market. Issues about selling practices, risk-pricing, product design, and claims administration have been attracting attention in the context of such areas as motor and home contents.

The Financial Conduct Authority has recently announced investigations into claims practices and add-on products. In the context of emerging insurance regulation, the recent history of payment protection insurance often arises, as a notorious case study of the sector and regulators getting it wrong in the context of general insurance.

In this Thinkpiece, Teresa Perchard, written just before she stepped down from the role of Head of Policy & Advocacy at Citizens Advice, details how the scandal developed, how consumer groups tried to raise the alarm, and the various stages of response by the regulators.