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BNP in row over Cardif Pinnacle

Formed in 1971,Cardif Pinnacle is part of BNP Paribas Group

A banking group with pockets as deep as BNP Paribas should never have allowed the collapse of 2,600 Cardif Pinnacle income protection policies, says Paymentcare managing director Shane Craig.

But BNP Paribas says that although it owns Pinnacle outright, it is a stand-alone insurer within the group.

As reported in Money Marketing on June 30, worker were left unprotected last month after their cover was abruptly withdrawn by Cardif Pinnacle which said it was overwhelmed with claims.

A statement from Cardif Pinnacle explained it would cease offering IP to SalaryProtect customers “due to underwriting loses”.

Rivals Paymentcare and British Insurance have already stepped up to offer cover to those abandoned by Pinnacle, although terms may be different.

Formed in 1971, Cardif Pinnacle is part of BNP Paribas Group which has pushed the creditor, warranty and special risks insurer to expand its insurance business outside the UK, with operations now running in Ireland, Sweden and South Africa.

Craig says: ”People thought that they were going to a reputable company.

“BNP Paribas has put profits before people. We are extending cover to anyone who was covered by SalaryProtect so they are not effectively left as refuges without cover.

A BNP Paribas spokesperson says: “We are the parent company and the Cardif Pinnacle insurance side has little to do with us”.