There can be few finance markets that have hit the headlines to the same degree as the creditor insurance market has over the past 18 months. A market which, until 2005, was robust and highly (excessively?) profitable now faces fundamental changes in terms of its distribution structure and sales tactics – always the core drivers of sales – and its pricing. And yet, despite all the criticism, the public see real value in holding a policy that can repay their debts should they suffer a loss of income due to unemployment, accident or sickness. If expenditure on PPI is falling, this mainly reflects a downturn in the underlying debt markets rather than a significant rejection of the concept of PPI.

The coming few years will see a market in transition: expenditure on PPI policies is likely to remain weak as consumers seek to reduce their reliance on debt and regulatory changes are likely to result in significant changes in distribution, sales tactics and pricing.

This report covers the recent developments in the market, with a particular emphasis on the current wave of regulatory interest and the potential impact that this will have on the market.

The report additionally offers:

An investigation into the internal and broader social, legal and economic factors impacting on the market

An overview of the market’s competitive context, its strengths and weaknesses, insights and opportunities

The views of leading experts

An examination of recent and projected market growth

An appraisal of the supply side of the market, including market shares of the largest underwriters

A review of product innovation, distribution and promotion

An overview of general consumer financial activity

The results of Mintel’s independently commissioned consumer research, which offers insight into the leading characteristics, attitudes and behaviours of policyholders

Special further analysis (using cluster modelling) to enable deeper understanding of the core target market.