Shall I compare thee to a table?

Some industry commentators praised the tables as a source of information for consumers. Others fear it could undermine the value of advice and lead to consumers choosing unsuitable products.

The regulator said the tables had been designed to help consumers who are thinking about taking out an MPPI policy to shop around and identify products that could meet their needs. However, when it comes to MPPI, are tables a realistic way to compare products?

John Blundell, managing director of Sterling Insurance Group, said the protection industry was continually looking for ways of helping customers make informed choices about MPPI and the FSA’s tables emphasised the customers right to choose MPPI and compare prices and products. However, he said he was concerned the tables could encourage customers to think cost should be the overriding factor when it came to choosing a suitable policy.

Mr Blundell said: “MPPI is a viable and affordable safety net but it is an individual purchase specific to an individual’s needs. Customers need to do some soul searching about their exact requirements before selecting cover.”

Simon Burgess, managing director of British Insurance, said the tables would only serve to confuse customers rather than empower them as they did not enable customers to compare the products on a like for like basis.

Mr Burgess said: “There are so many product variations with differing exclusions, terms and conditions that it is impossible to be able to collate the data in a way that allows consumers to cut the wheat from the chaff and work out what is really a good deal.”

Mark Wilson, head of propositions for financial services product portal Assureweb, said payment protection products needed to be carefully considered against exclusions and limitations in comparison to alternative options.

Mr Wilson warned the tables did not match products to consumers’ particular needs. He said: “A comparison service can help benchmark the product offering, but it does not consider alternative products that might offer a more comprehensive match to the client needs.

“In comparing payment protection products there will be subtle differences the consumer should watch out for, such as payment period limitations, common complaint exclusions and potential benefit reduction where income protection and payment protection policies co-exist.”

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