LONDON (Bloomberg) - The UK's Competition Commission said it will undertake further exploration of loan-insurance products after it found the cost of such coverage is sometimes higher than the interest paid on loans.

"Consumers buying a distributor's credit product are relatively price insensitive when they consider buying PPI," the regulator's deputy chairman, Peter Davis, said in a statement yesterday. "Distributors might face little substantive competition when supplying PPI to those people who buy the distributors' own credit product."

Consumers could save about £1 billion ($2.1bn) if the loan-insurance market was more competitive, the Office of Fair Trading, another UK regulator, said last year after conducting a five month study.