Mergers and acquisitions expected in the UK insurance sector
Over the last few days the ongoing dispute between Aviva and the RSA has dominated the headlines and many people believe that the insurance industry is very much primed for a number of mergers and acquisitions in the short to medium term. Royal Bank of Scotland is already under pressure from the European Union to dispose of its Direct Line and Churchill insurance operations in the short to medium term. These operations are certain to attract the attention of insurers in the UK and while we are unlikely to see any aggressive bidding due to the economic environment there is no doubt there will be a number of parties interested.
This is just the tip of the iceberg with regards to the UK insurance sector where the Resolution Group is planning to create a business worth in excess of £10 billion. We could also see some of the major insurance companies in the UK looking to merge their operations as a means of streamlining the cost for the future and enabling them to focus on new markets and new opportunities in the medium to longer term. The markets are currently awash with rumours and counter rumours with some very interesting suggestions in the pipeline!
Moneyfacts website defends PPI
As Payment Protection Insurance (PPI) came under fire last month from the Office of Fair Trading (OFT) for lack of clarity, Moneyfacts has defended the scheme as "an invaluable safety net".PPI covers borrowers who find it difficult to manage loan and card repayments because of long-term illness or unemployment.The OFT demanded that the Competition Commission launch an investigation following compl...Read More
Prudential admits to further delays in AIG acquisition
The reputation of the Prudential management is today in tatters with confirmation that planned stock market listings in Hong Kong and Singapore have been delayed due to concerns expressed by the Financial Services Authority [FSA] with regards to capital requirements for the enlarged group. While there are no problems with regards to Prudential itself, it is the massive changes the acquisition woul...Read More
EU Gender Directive: Have you heard about it?
What is the EU Gender Directive? The EU Gender Directive relates to a ruling across the EU for equal treatment between men and women, which means that providers will no longer be able to price insurance and annuities on the basis of gender. When does the EU Gender Directive come into place? The EU Gender Directive comes into force as of Friday 21st December 2012, from there onwards provid...Read More
Insurance warning regarding burglaries
While it will come as no surprise to the UK population to learn that crime, fraud and scams increase in frequency during difficult times, a forecast 50% increase in burglaries by the end of 2009 may surprise many. This is the figure being suggested by the insurance giant Norwich Union which is being used as a warning for those considering reducing their home insurance cover or those who have cance...Read More
Two million offered credit card insurance compensation
27/01/2015 Two million customers will be offered compensation from their banks for being sold insurance policies they didn’t need, covering the loss or theft of their bank cards. Banks and credit card issuers have been told by the Financial Conduct Authority (FCA) that they must send a letter to customers who were affected, asking them if they would like compensation. These letters will b...Read More