Equitable Life competition scheme condemned
The Parliamentary Ombudsman has today issued a damning indictment of the U.K.'s proposed £400 million payout to Equitable Life suffers, many of whom lost their life savings during the company's near collapse back in 2000. The £400 million compensation scheme, yet to be rubberstamped by the government, equates to just £266 per policyholder despite the fact that a recent report suggested losses for policyholders were between £4 billion and £4.8 billion. So is their new hope for Equitable Life suffers?
There is no doubt that the damning report from the Parliamentary Ombudsman will make the UK government sit up and listen but whether additional funding will be injected into the compensation package remains to be seen. This has taken 10 years to bring to fruition and even now there is great controversy regarding the level of compensation and the admission of guilt on behalf of the UK government. While there is no doubt that the near collapse of Equitable Life, and the massive losses which some customers experienced, were the result of guarantees set up by the company itself the regulatory system in the UK was also called into question.
Whether or not the government is able to introduce more money into the compensation scheme is a matter for discussion in the short to medium term but ultimately there is no way they will increase the compensation pot from £400 million to anywhere near the £4 billion estimated losses.
ZÃ¼rich Insurance hit by record £2.28 million fine
ZÃ¼rich Insurance, one of the more popular insurance companies in the UK, has today been hit by a £2.28 million fine from the FSA after admitting losing confidential details relating to 46,000 UK customers. This is the largest fine handed it a UK based insurance company and perfectly illustrates the seriousness of the charges which the company has admitted. It was found that confidential inf...Read More
Quinn Insurance still under pressure
Despite the fact that the regulator has performed something of a partial U-turn and will now allow Quinn Insurance, the troubled Irish insurance company, to partially re-enter the UK insurance market there are fears regarding those employed by the company. It seems inevitable there will be job cuts and this figure could be as high as 1,000 jobs if as expected the company is banned from further inv...Read More
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
Online car insurance is benefiting from the downturn
The online car insurance industry appears to be benefiting from the ongoing recession as Admiral Group reported profits up 11% at £202.5 million. The figures are slightly above expectations although there was a disappointing 30% fall in profits afforded to the Confused.com website. The last few months have seen a number of car insurance companies withdraw from the insurance comparison sector whic...Read More
Hated hand-me downs worth £50 million
Brits are hoarding hated hand-me-downs and inherited items worth a whopping £50 million, according to home insurance provider Abbey.Some 12 per cent of people admit to living in homes cluttered up by inherited items, with the average person owning 12 such items, worth an estimated £9,466 per person.Over half (53 per cent) hide the heirlooms around the house, while one-in-five (20 per cent) sell...Read More