Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • March 2016
03

PPI 'the most complained-about product', says FCA 

Open-access content Thursday 31st March 2016 — updated 9.43pm, Wednesday 6th May 2020

Payment protection insurance (PPI) has the highest number of complaints among financial products and services, the Financial Conduct Authority (FCA) has found.


31 MARCH 2016 | BY CINTIA CHEONG

Based on data provided by financial services firms, PPI had 932,298 complaints between July and December 2015, 6% up from the previous six months. 

Overall, firms received 2.11 million new complaints, a decrease of 1.4% from the first half of the year. The FCA said the reduction was mainly driven by a 10% drop in problems with current accounts and a 15% fall in concerns about savings accounts.

The total redress paid to consumers fell to £1.97bn, which is slightly lower than the £1.98bn paid between January and June 2015.

The regulator explained the fall was mainly owing to a 2% reduction in payments related to general insurance and pure protection products, which include PPI. This accounted for almost 82% of complaints redress payments.

Christopher Woolard, director of strategy and competition at the FCA, said: "It is positive to see that the longer-term reduction in the volume of complaints has continued into the latest period. Firms seem to have taken on board our previous feedback on levels of complaints and we are slowly seeing them address these issues. 

"However, firms still need to do all they can to reduce complaints and ensure that they are working in the best interests of consumers."

Within general insurance and pure protection products, Lloyds Bank had the highest number of complaints with 152,159 received, followed by Barclays (136,433) and Bank of Scotland (120,444). MBNA came fourth with 81,377 complaints, while Home Retail Group Insurance was also within the top five (54,296).

For life insurance, Prudential Assurance topped the list with 8,063 complaints. Friends Life came second (5,496), followed by Royal London (4,530), Aviva Life (4,023) and Phoenix Life (3,215). 

 

Top five most complained about products and services between July and December 2015:

 

1. PPI - 932,298 complaints (up 6% compared to the previous six months)
2. Current accounts - 454,276 (down 10%)
3. Other general insurance - 296,505 (down 3%)
4. Credit cards -132,988 (up 9%)
5. Savings, including cash ISAs, and other banking - 67,546 (down 15%)

This article appeared in our March 2016 issue of The Actuary .
Click here to view this issue

You may also be interested in...

Office technology © Shutterstock

Insurers face increasing threat from InsurTech start-ups

Competition within insurance is a significant factor affecting growth, with an increasing challenge from start-up InsurTech companies, according to the latest financial services survey published by PwC and CBI.
Tuesday 29th March 2016
Open-access content
Pancakes and blueberries © Shutterstock

Risky portfolios do not match investors' appetites

The majority of the UK's ISA portfolios are in sectors with top risk ratings, but investors do not have the same requirements, a firm has warned.
Thursday 31st March 2016
Open-access content
Multiple phone receivers hanging © Shutterstock

Half of new pensioners will get less than full rate

Some 55% of people retiring in the first year of the new state pension rollout will receive less than the full amount of £155.65 a week, the Work and Pensions Committee has found.
Wednesday 30th March 2016
Open-access content
Credit card transactions © Shutterstock

Annuities see revival in popularity

Annuities are increasing in popularity again, with the number of sales outstripping drawdown policies, according to the latest figures by the Association of British Insurers (ABI).
Wednesday 30th March 2016
Open-access content
A pot of coins with a small plant © iStock

MPs launch early pension access inquiry

The Work and Pensions Committee is investigating the possible effects of a policy that could allow women affected by the recent changes in accelerated state pension age to take early retirement.
Monday 21st March 2016
Open-access content
Sign directions of different types of financial products © Shutterstock

UK government to replace free guidance providers with new model

The Treasury has announced in the Budget statement plans to restructure the statutory financial guidance providers the Money Advice Service (MAS), The Pensions Advisory Service (TPAS) and Pension Wise.
Friday 18th March 2016
Open-access content

Latest from General Insurance

td

Brain power

The latest microchips mimic cerebral function. Smaller, faster and more efficient than their predecessors, they have the potential to save lives and help insurers, argues Amarnath Suggu
Wednesday 1st March 2023
Open-access content
bl

'Takaful' models of Islamic insurance

Ethical, varied and a growing market – ‘takaful’ Islamic insurance is worth knowing about, wherever you’re from and whatever your beliefs, says Ali Asghar Bhuriwala
Wednesday 1st February 2023
Open-access content
il

When 'human' isn't female

It was only last year that the first anatomically correct female crash test dummy was created. With so much data still based on the male perspective, are we truly meeting all consumer needs? Adél Drew discusses her thoughts, based on the book Invisible Women by Caroline Criado Perez
Wednesday 1st February 2023
Open-access content

Latest from March 2016

IFoA funds three actuarial research programmes

The Institute and Faculty of Actuaries (IFoA) has today announced three leading research programmes to address issues in pensions and insurance such as longevity and health.
Thursday 31st March 2016
Open-access content
2

UK pet insurers pay out £1.8m a day in claims

Pet insurance claims cost £657m in the UK in 2015, an equivalent of £1.8m per day, according to the Association of British Insurers (ABI).
Tuesday 29th March 2016
Open-access content
2

Three quarters of finance professionals reluctant to ask for pay rise

Some 72% of people employed in financial services have not asked for a pay increase at all in the past three years, according to a survey.
Thursday 24th March 2016
Open-access content

Latest from no_opening_image

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
ta

IFoA adjudication panel: Mr Jack Wicks, student

On 30 October 2019 the Adjudication Panel considered an allegation of misconduct against Mr Jack Wicks (the respondent).
Friday 28th February 2020
Open-access content

Latest from inline_image_missing_alt_text

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
2

Bitcoin: In the vaults

Blockchain technology and the trading of bitcoin were introduced in October 2008 in the famous paper by Satoshi Nakamoto.
Wednesday 4th March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content

Latest from missing_authorDate_strap_details

TPR publishes coronavirus guidance

The Pensions Regulator (TPR) has published guidance to help UK pension trustees, employers and administrators deal with the financial and regulatory risks posed by coronavirus.
Monday 23rd March 2020
Open-access content
web_p24_cat-and-fish_iStock-483454069.png

Sensitivity analysis: swimming lessons

Silvana Pesenti, Alberto Bettini, Pietro Millossovich and Andreas Tsanakas present their alternative approach to sensitivity analysis
Wednesday 4th March 2020
Open-access content
OCT-2019.jpg

10

October 2019 archive + digital edition
Wednesday 9th October 2019
Open-access content

Latest from inline_local_link

2

COVID-19 forum for actuaries launched

A forum for actuaries has been launched to help the profession come together and learn how best to respond to the deadly coronavirus sweeping the world.
Wednesday 25th March 2020
Open-access content
2

Travel insurers expect record payouts this year

UK travel insurers expect to pay a record £275m to customers this year as coronavirus grounds flights across the world, the Association of British Insurers (ABI) has revealed.
Wednesday 25th March 2020
Open-access content
2

Grim economic forecasts made as countries lockdown

A sharp recession is imminent in the vast majority of developed and emerging economies as the deadly coronavirus forces businesses to shut down across the world.
Tuesday 24th March 2020
Open-access content

Latest from 03

IFoA funds three actuarial research programmes

The Institute and Faculty of Actuaries (IFoA) has today announced three leading research programmes to address issues in pensions and insurance such as longevity and health.
Thursday 31st March 2016
Open-access content
2

UK pet insurers pay out £1.8m a day in claims

Pet insurance claims cost £657m in the UK in 2015, an equivalent of £1.8m per day, according to the Association of British Insurers (ABI).
Tuesday 29th March 2016
Open-access content
2

Three quarters of finance professionals reluctant to ask for pay rise

Some 72% of people employed in financial services have not asked for a pay increase at all in the past three years, according to a survey.
Thursday 24th March 2016
Open-access content
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Actuarial Contract Opportunities - Life Insurance

United Kingdom, Ireland and Remote
Competitive
Reference
148599

Pricing Manager (Mid-Corp)

London (Central)
£75000.00 - £90000.00 per annum
Reference
148749

Head of Insurance Pricing Risk

London (Central)
£100000.00 - £130000.00 per annum
Reference
148748
See all jobs »
 
 
 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ