The chairman of the European Insurance and Occupational Pensions Authority said he “acknowledged that significant consumer protection problems, including mis-selling issues and market imperfections, have occurred in PPI”.
He called on regulators to analyse the PPI markets to see whether they merited further investigation and possible further supervision or regulatory action.
His comments come as figures from the FCA revealed that a further £424m of PPI refunds was repaid in April this year.
Since January 2011 a total of £10.1bn has been paid back to customers who claimed they were mis-sold PPI. The refund figure in April was an increase of approximately £50m compared to £375.9m in March.
In a policy statement issued 6 April the FCA stated that a firm generally cannot sell PPI at the same time as a customer is taking out credit, and that customers must be made aware that they do not have to buy PPI from the same provider.
From the beginning of 2013 to April, the monthly PPI payouts were:
* January £439.3m
* February £409m
* March £375.9m
* April £424m
Philip Milton, managing director of Devon-based Philip J Milton & Company, said: “I lodged complaints regarding PPI with individual firms even before the whole scandal had blown up, as I saw that some clients already had good cover with their pension scheme and their employer and just didn’t need it.
“However I do believe three-quarters of people who have been compensated probably should not have been as they may well have needed the cover. There are a lot of people jumping on the bandwagon.”