PPP Fears Flood of Complaints if it Joins the Insurance Ombudsman Bureau

Britain's second-largest private medical insurer, PPP, has expressed concerns that if it joins the Insurance Ombudsman Bureau, it would face a significant increase in complaints about its administrative and service standards. According to an internal document seen by The Sunday Times, PPP is concerned that the transfer to the IOB would trigger many further complaints, which would require the company to consider whether its standards are "of a sufficiently high standard" to withstand close investigation. Critics argue that the Personal Insurance Arbitration Service (PIAS), which PPP currently uses, offers customers less protection than the IOB scheme.

Key Takeaways:

• PPP fears a flood of complaints if it joins the Insurance Ombudsman Bureau, citing concerns about its administrative and service standards.
• The company currently uses the Personal Insurance Arbitration Service (PIAS), which critics argue offers customers less protection than the IOB scheme.
• Critics warn that PIAS requires the insurer's agreement before customers can go to arbitration, and the decision is binding on the customer.
• PPP's company secretary, Nicholas Deeming, emphasized the company's commitment to high service standards, citing the internal memorandum as evidence of this commitment.
• The ADM membership noted in the source was not clarified but the internal document discussing the 'IOB' not resolved.
• The document expresses concerns about the cost of handling a large number of complaints.
• It is argued in the source that the insurer has to agree before arbitration, which is seen as a limitation.

Statistics:

• No specific statistics are provided in the source material.
• The document expresses concerns about the potential financial implications of handling a large number of complaints, but no specific figures are provided.

Sources:

• The Sunday Times, Copyright (C) 1994.