Equitable Life back in the headlines
Equitable Life is again back in the headlines with news that a number of pensioners who suffered enormous losses when the company effectively reneged on policy payments are to approach the UK government about an increased compensation program. The Equitable Members Action Group will write to various ministers in the coalition government to demand an increase in the rumoured £500 million compensation payment being discussed, with some estimates putting overall losses at nearer £5 billion.
There have been a number of investigations into the Equitable Life situation after various regulatory problems arose with the government taking partial responsibility for the collapse of previously agreed payments to policy holders. However, this situation has dragged on for years and, if the rumours are correct, those who suffered enormous losses may well have to take a 90% hit with only 10% of overall losses available as compensation. There is also the issue of the timing of payments with an agreement unlikely to be reached until well into 2011.
While the previous Labour government has taken great criticism with regards to the Equitable Life situation it is worth remembering that a number of the alleged regulatory issues occurred in the 1990s under the previous Conservative government. The demise of Equitable Life, and its eventual inability to cover future liabilities, occurred back in 2000 and impacted 1.5 million people.
Civil servant found guilty of car crash scam
As if we needed another reminder of the various insurance scams active in the UK at the moment, today saw a civil servant jailed for 4 1/2 years for his part in a £1.6 million "cash for crash" scam. Mohammed Patel, who worked at the Department of Work and Pensions, was found guilty of being part of a gang which staged road traffic accidents by breaking quickly and forcing cars behind them to cras...Read More
Osborne could merge income tax and national insurance
30/06/2014 Chancellor George Osborne could announce plans to merge income tax and national insurance (NI) into a single payment if they are re-elected in the next general election. The plan was first suggested by the Office of Tax simplification in March 2011, however, consultation on tax reform has so far been pushed back due to the complexity of integrating the two separate systems. The...Read More
Indian Insurance Market Attracting UK Interest
As the UK economy continues to struggle there are signs that some of the larger UK insurance companies are making a major play for a slice of the Indian insurance market. As the Indian economy continues to go from strength to strength, even as the worldwide economy struggles, it has become apparent to many that India offers great potential for the future. The likes of Standard Life and Aviva ha...Read More
Government backtracks on national insurance argument
The UK government, and especially Lord Mandelson, have this weekend backtracked on a number of allegations made against the business community in the UK. Lord Mandelson had been highly critical of many business leaders who signed a letter in support of the Conservative party's intention to reduce the proposed national insurance tax increase. The government appeared to suggest that business leaders...Read More
Aon fined £5.25 million for compliance failures
The financial services authority (FSA) has today levied the largest fine ever on a UK insurance company with news that Aon has been fined £5.25 million for having insufficient internal controls to stop over $7 million worth of suspicious payments being made to overseas firms and individuals. It is not clear as to whether these payments were actually illegal or fraudulent but the fact that the int...Read More