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.
Share this..
Related stories
Norwich Union disappears and Aviva takes over
While effectively the name of Norwich Union began to disappear many years ago, today marks a definitive point in the history of this well-known insurance company, which will disappear altogether. Having operated as a subsidiary of Aviva, the former CGNU insurance conglomerate, Norwich Union will be no more after today as the rebranding exercise reaches the end of the road.
While the...
UK motor insurance premiums increase yet again
The AA insurance has today commented upon the state of the UK motor insurance market with a suggestion that the average comprehensive motor insurance policy is now costing in excess of £1000 a year. This is an increase of around 20% on the 2008 figure and is predominantly because of fraudulent claims and the damage caused by uninsured drivers in the UK. All in all it is believed that UK motori...
Read MoreLoyal customers punished by policies
Insurance companies are passing on their own rising costs to the customers who are most loyal to them, an economist has warned.Policies for existing clients are super-charged to account for the cost that companies incur when offering lower premiums to new customers, says Professor Vincent-Wayne Mitchell, an expert in marketing and member of the Cass Business School.Professor Mitchell told BBC Two'...
Read MoreDon't forget to pack the insurance, holiday makers urged
As many as 20 per cent of travelers go on holiday without travel insurance, according to insurance provide Churchill.Trying to save money by traveling uninsured could cost holidaymakers a fortune in the long-run - the Foreign and Commonwealth Office (FCO) reports that an air ambulance in the Canaries could cost as much as £12,000 to16,000 or a scheduled flight, stretcher and medical escort home f...
Read MoreLegal and General attracts short selling
Continued speculation that Legal and General will need to tap the market for additional funds in the short term has further undermined the shares today. Despite assurances from the group that it has in excess of £1.6 billion available to cover any potential shortfall, as well as news that the credit default assumption has been increased by £650 million, this has done nothing to calm market nerve...
Read More