Why has it taken 10 years to address the Equitable Life collapse?
It is difficult to appreciate how it has taken the UK government 10 years to come anywhere near answering compensation claims for the Equitable Life debacle back in 2000. Equitable Life was literally on the verge of collapse due to a number of retirement guarantees offered to customers which came back to bring the company to its knees. The company lost a high-profile court case which effectively forced the breakup Equitable Life and a nightmare scenario for many customers.
The new coalition government has recently indicated a potential compensation payment of around £500 million although this is only a fraction of that expected by campaigners on behalf of those who lost out. While the current UK government was obviously not involved in the Equitable Life debacle it has been left to carry the can and many experts are deeply disappointed about the potential compensation figure being mentioned. However, this does not answer the question as to why it has taken nearly 10 years for the issue to be addressed - although the final ruling will not come into play until late in 2010/early 2011.
Aside from problems relating to the Equitable Life collapse we must ensure we do not see a repeat of the situation in the future.
Equitable Life chief executive urges policyholders to accept compensation
Chris Wiscarson, the chief executive of Equitable Life, has today stepped into the mix with regards to the ongoing compensation claim being handled by the UK government. It is believed that customers lost in the region of £4 billion - £4.8 billion when Equitable Life was forced to renege on a number of promises on some of its investments. However, the chief executive of the Equitable Life believ...Read More
Sean Quinn attempts to rescue his insurance empire
Sean Quinn, the founder of Quinn Insurance, yesterday served various papers on the Irish financial regulator which have resulted in a week-long reprieve before the company is possibly placed into permanent administration. As we covered in one of our earlier articles, the Irish regulator stepped in to effectively try and close down Quinn Insurance last week citing various regulatory problems and co...Read More
Lloyd's Of London announces 50% reduction in profits
Lloyd's Of London, the central insurance market of the world, has today announced profits of £1.9 billion in 2008 against £3.9 billion just 12 months earlier. A number of factors have to be taken into account including reduced investment returns, a number of significant major catastrophes as well as currency movements. All in all, when considering the very difficult scenario around the world thi...Read More
MPs Call For Changes To Use Of Insurance Surpluses
While it has been a bone of contention for many years it seems as though the subject of so called orphan funds may soon be cleared up with news that MPs are set to press the FSA to introduce strict new guidelines. Orphan funds are basically funds which have been set aside to smooth the natural economic cycle of returns and cover any claims. Many UK insurers now have funds in the billions of poun...Read More
Bonfire night can cost uninsured millions
Bonfire night could cost those without insurance as much £780 million in damage, recent research by AA Home Insurance has indicated. According to the AA, as Brits increasingly spend more time and money on their gardens, the combined value of outdoor property in the UK is now estimated to be worth as much as £5.7 billion, but as many as a quarter (23 per cent) of people in the UK say none of the...Read More