With the stigma enclosed with payment protection insurance, distributors are shying away from insurance companies intending to sell the product to families and breadwinners. The mis sold PPI crisis spells doom for insurance companies who want to sell the product in a positive beat.
The positivity is impossible. Analysts believe that the decades-old trouble of payment protection insurance had established a culture and an industry among consumers. Its long-time cultural effects may last for centuries.
Insurers find trouble finding people to sell the product and distributors who would take the plagued product from their hands.
Some distributors said it would be difficult to persuade people even if sellers were sincere in their approach to selling to people, PPI has carried a stigma that it should be rid off. This makes it difficult to sell and can make the arrangement quite obtuse.
PPI is the UK’s biggest financial scandal inflicted on over half of the UK’s population. Almost all UK banks, including the big four, are involved in the mis selling.
The UK banking industry has set aside and recompensed a total of £26 billion and counting for mis sold payment protection insurance.