There are many different things that need to be looked at when thinking about the future of economic growth in PPI (Payment Protection Insurance). You need to consider what impact it is having on the industry as a whole, and also, look at how it may impact your company. Of course, it makes sense to be aware of any risks or disadvantages that may be associated with a product or service, and one of the biggest considerations is the need to protect your investment, if you have one.
Looking at the larger picture, there will be questions as to whether the introduction of PPI has actually helped the economy in the long term. There will always be those that say that the introduction of such an insurance product helped the financial services sector to excel, but then look at the recent financial crisis. The fact is that there is a growing body of evidence that says otherwise, and this is something that you really need to take into consideration before making your final decision.
If you are someone that works for a major finance company, you will no doubt be worried about the economic implications of PPI. You may not actually need such protection, and therefore there will be an argument that PPI benefits just the company and its shareholders, rather than the employees and customers that use the financial services that the company provides. This can create a very emotional issue, one that needs to be addressed before making a final decision. It is important to know that the vast majority of the PPI claims filed each year are actually by people who do not need the product, and therefore do not need it through the bank.
From a purely economic point of view, there is one other thing to consider when looking at the possible economic growth from PPI's. After all, you want to ensure that you get the best return on your investment that you can. You also need to ensure that you don't sacrifice the security and peace of mind that comes with having insurance protection for your personal finances. This means that even if you are offered low interest rates on your finance products or low monthly repayments, you should be able to find something within your budget to make it work.
From a personal point of view, you want to know that your money is secure. When you are borrowing money or setting up a savings plan, you need to have complete confidence that you are managing your money and your financial affairs in the best way possible. If you are offered an attractive rate from a financial services company, but then have to pay more if you go ahead with it, you may question whether the company is actually giving you a good deal. You may find yourself questioning whether it is more of a risk to lose money and have poor returns than it is to take the chance and pay a slightly higher monthly payment, as you are less likely to default on the loan.
Of course, you will also need to consider the impact on staff morale and productivity. If PPI was to lead to staff turnover, this would undoubtedly . . . . . . harm the overall economic growth. Staff will need to be aware of the benefits and costs of PPI and the options available to them when choosing a provider. They will need to be informed about any current changes to the policy and what their position is at present. In addition, they will need to be kept informed of any changes to the rates that are applicable to them.
There can also be questions about the legality of the company making the provision. If you have employees that are already covered by another employer's PPI policy, they may feel obliged to join this one in order to continue receiving cover. On the other hand, employees may need to look into whether they are legally entitled to such a payment. Many employees find that they are not eligible because they hold no stock or life experience in a particular company. You could even consider setting up a policy for your employees as part of your company assets for the future.
The fact is that there are many reasons why companies choose to offer PPI (or Payment Protection Insurance) to their employees and there is a good reason for this. The majority of businesses feel that it is more convenient for them to pay for this insurance in one lump sum than having to spread the cost over several years. Even when the economic growth in the UK slows a little, there is still sufficient room to make big profits. With PPI, the risk of not being able to recoup the cost from a large number of employees is considerably lower.