Royal Bank of Scotland to close half of its insurance offices
In a rather disappointing and surprise move it has been announced that Royal Bank of Scotland will be closing half of its insurance offices with Glasgow, Peterborough and Bristol earmarked for closure. This will result in well over 1000 jobs being lost amid signs that the company is looking to trim down its insurance operations, which include Churchill and Direct Line, ahead of a forced sale by the European Commission.
The company has already tried unsuccessfully to auction the two main insurance divisions although due to the fact that the UK government stepped forward with significant taxpayer backing it is now being forced to push these two operations towards new owners. When you consider that Churchill and Direct Line have been two of the most successful subsidiaries of Royal Bank of Scotland it seems rather bizarre that the company is being forced to sell the crown jewels to pay down debt and abide by EU state funding regulations.
There will no doubt be a number of competitors already looking over the books of these two operations which are two of the best known in the UK and two of the most successful.
PPI removed from financial sector as of today
Payment Protection Insurance (PPI), the controversial insurance which has proved very lucrative for many financial institutions throughout the UK is today banned from sale in the country. The Financial Services Authority (FSA) recently acted upon the advice of a prominent report into PPI and the problems related to this particular investment vehicle.
In essence, the vast majority of...
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
Insurance premiums no longer varied according to gender
A European court of justice ruling, made in 2011, means insurance companies will no longer be able to vary premiums according to gender. The change will come into force on the 21st December 2012. Some insurers have not yet declared how much they plan to charge in the future but in most cases this will mean that women will be paying higher premiums than they currently do. Historically, femal...Read More
Santander announces agreement with Aviva
Spanish financial giant Santander, the owner of UK assets such as Abbey, Alliance and Leicester and parts of Bradford and Bingley, has today announced an exclusive five-year deal with UK insurance giant Aviva. The agreement sees Santander enter into an exclusive deal which will see the company sell Aviva life insurance through its 1300 UK branches. This is not the first deal between Santander a...Read More
Family income benefit
Family Income Benefit is an innovative type of life insurance product, which is useful and extremely good value when compared to some other types of life or health insurance. As with term assurance policies, family income benefit policies provide cover on death if you die during the policy term. But instead of a lump sum, it gives regular set payments (income) for the rest of the term of the co...Read More