In the PPI sector, there are vast opportunities for claims firms — especially those using claims management software.
It is a critical time now for claims management companies that handle payment protection insurance (PPI) caseloads. A deadline of just over 18 months from now means there is relatively little time to deal with the expected deluge of claims from the public. Claims firms that are using claims management software, however, have many advantages.
The latest figures from the Financial Conduct Authority, the government watchdog overseeing the entire PPI scandal, show that £250.5 million was paid out by financial institutions in PPI refunds and compensation in July this year. That figure is up on £244.6 million on the same month in 2016, demonstrating that there is no slowdown in PPI claims and compensation.
Indeed, since PPI refunds and compensation started being made in January 2011, an astonishing £27.9 billion has been paid out to customers to date. This is from around 18 large banks, credit card companies, vehicle finance firms, mortgage providers and others, all of which have set aside billions more to cover future claims.
Profiting from PPI with Claims Management Software
There is no denying that PPI represents something of a windfall for claims management companies. Members of the public who want to make a PPI claim are, of course, entitled to do it themselves. Many, however, do not. This can be due to issues such as a lack of knowledge of how to go about it, or not having the time to do so. Instead, they turn to the expertise of claims firms to handle it for them.
Claims firms, many using sophisticated claims management software to cut through heavy caseloads with ease and speed, have received around £5 billion in fees to date from handling PPI claims. Automating the entire process, rather than the slow and laborious task of manually dealing with individual claims, is essential to earning more fees and becoming more profitable.
Additionally, this kind of business-boosting software is highly configurable and adaptable to companies’ different needs. Claims firms can instantly integrate all the essential apps and services they need in running their companies, including emailing clients, SMS services, specific documentation and more. Now, everything is all in one place, on one platform — and claims firms stand to become much more efficient as a result.
Last Big Wave of PPI Claims
Claims firms are watching the PPI claims sector with growing anticipation. The FCA’s PPI claims deadline of August 2019 is currently getting widespread public attention because of a brash television advertisement starring Arnold Schwarzenegger. The action hero appears in animatronic form and bellows at people to claim PPI if they can before the cut-off period.
The £42 million campaign — paid for by the financial institutions that mis-sold PPI — is designed to bring about an end to the PPI debacle that has tarnished the UK financial sector. Allowing PPI claims to drag on endlessly would, the FCA believes, not be to anyone’s benefit, including members of the public who hold or held accounts, loans or other financial products with unwanted PPI policies attached.
All of this presents claims management companies with enormous potential to reap new PPI claims business and grow. People making PPI claims want their cases resolved as quickly and professionally as possible, so that they get their refunds or compensation without any difficulties. Claims firms using claims management software can easily meet these expectations and stand to become more profitable in the process.
