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.
Is the Royal Bank of Scotland set to be nationalised?
There are fears this evening that the UK government will need to nationalise the Royal Bank of Scotland after the share price collapse. Despite the government increasing its stake to 70% and promising to keep the business afloat via various guarantees it would appear that UK investors are not willing to give the company the benefit of the doubt. Despite receiving £32 billion of taxpayer's money o...Read More
What have the government got to hide about Equitable Life?
Despite the government wheeling out a statement suggesting that many of those customers who lost money in Equitable Life will receive compensation in the years to come, Ann Abraham of the Parliamentary ombudsman has hit out at the government's interpretation of her report. The report into the Equitable Life saga was deeply critical of the UK government and the regulatory regime created to look aft...Read More
With-profits bond holders hit by exit fees
Just when you thought it could not get any worse we have today seen Norwich Union introduce exit fees for with-profits bond holders. The group had been the only one of the majors which had not introduced the charge before today, but now the whole sector is singing from the same hymn book.
The move will see with-profits bond holders hit by exit charges ranging from zero to twenty fi...
Life Insurance ‘Too Expensive’ for Brits
Research from Beagle Street has found that Brits are shunning life insurance policies in large numbers, because they believe it is ‘too expensive’ 39pc of people who took part in the research claimed they felt that life insurance policies cost too much, despite the fact that prices start from just £3 per month. This means that more than half of British adults are at risk of leaving their...Read More
Personal Injury ‘Compensation culture’ costs Motorists £118
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