Sales Pitch Is Key To Ppi - British Insurance
Competition Commission proposals forcing insurers to be more open is less important than quality of sales pitch when determining take up of payment protection, a provider has claimed
The commission has recommended much more stringent requirements on companies to make available information like rates of declined payouts.
But Simon Burgess, an independent provider for British Insurance, has argued research from the London School of Economics shows this does not affect consumer behaviour is buying payment protection insurance, while the salesman's tactics did.
He said: "This does not surprise me. We all know extroverts make more sales, whatever sector they're in, so the commission should be tackling the pressure that's being exerted on vulnerable consumers, rather than recommending they wade through more information.
"I agree consumers need more information to be able to shop around, but what use will it be when faced with a tenacious sales person who convinces the consumer to keep the sale in house?
"This research clearly shows that, once consumers are in front of persuasive salespeople, they will end up buying the product whether they have more information or not."