Introduction
In the face of regulatory scrutiny, rising consumer dissatisfaction, negative publicity and accusations of profiteering, creditor insurers have never faced a more uncertain future. This report makes sense of the latest developments, analyses their potential effects on the market and looks at how lenders and insurers alike can best adapt to the many challenges that lie ahead for the industry.
Scope of this report
- Unique market share, market size and product penetration data
- In depth analysis of the underlying consumer credit market including personal loans, credit cards, mortgages, retail and motor finance
- Discussion of the key regulatory issues that are currently affecting creditor insurers
- Forecasts for the future size and growth of creditor insurance premium income up to and including 2010
Research and analysis highlights
Lenders are introducing new distribution models that incorporate profitability rather than sales volumes. This, and other pre-emptive action prior to FSA regulation, is likely to feed through into lower GEP for most PPI players in 2005. Many industry executives interviewed by Datamonitor predicted that flat premium income growth would be typical.
Macroeconomic factors such as interest rate rises in 2004 and weakening consumer confidence, combined with demand side factors, including the growing appeal of substitute products such as overdrafts and secured lending, have restricted growth in the two key consumer credit sectors of unsecured personal lending and credit cards.
Between 2004 and 2005, there was a slight decline penetration across most sectors. This can be attributed primarily to the influence of negative publicity in the national media, combined with some lenders toning down aggressive sales processes in the face of regulatory scrutiny.
Key reasons to read this report
- Understand the characteristics of typical PPI customers with exclusive consumer data
- Plan your future strategy with confidence using robust, scenario-based market size forecasts
- Identify the measures providers are taking to improve uptake and minimise the impact of regulatory scrutiny at this critical time
This report makes sense of the latest developments, analyses their potential effects on the market and looks at how lenders and insurers alike can best adapt to the many challenges that lie ahead for the industry.
