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.
Income protection 'can help with school fees'
Britons who send their children to private schools should consider taking out an income protection policy to help cope with rising fees, one expert has advised.Equity Partners, an IFA specialising in school fees, has advised parents that an income protection policy can ensure education costs are met even if fees increase.Kevin Tooze, managing director of the IFA, said: "If you want to protect the...Read More
1,200 bikes stolen every day, insurer claims
Around 16 per cent of cycle thefts take place in the home, Sainsbury's Bank said today.The home insurance provider made the eye-catching claim as it released new bike theft data, which was derived from claims histories dating back to 2004.According to Sainsbury's, an average of 1,208 bikes are stolen each day in the UK - with many people taking inadequate security measures to prevent the thefts.Fo...Read More
Legal and General shares hit by funding concerns
A report in today's Financial Times has upset investors in Legal and General with the shares falling to a ten-year low before recovering to close nearly 9% lower. The report in the Financial Times indicated the group was in talks with the FSA regarding an additional allocation of funds required to cover potential defaults on its bond portfolio.
The company has responded to the specu...
Administrators not in a hurry to sell off Quinn Insurance
Grant Thornton, the official administrators of the Quinn Insurance empire, has today confirmed that while interest has been shown in the operations there have been no discussions with potential buyers of the business. The Quinn Insurance saga appears to be getting more complicated by the day with court action, comments from the administrators and comments from the regulators appearing to cast diff...Read More
FSA launches investigation into with profits insurance sector
The Financial Services Authority (FSA) has launched an investigation into the with profits insurance sector amid concerns that communications with policyholders and the performance of these funds may not be as good as it should be. After completing a review of 17 companies, which control 80% of the assets held in the UK with profits fund sector, the FSA has launched investigations into two individ...Read More