Aviva has become the first provider to commit to tackling unfair exit fees on old pension plans following pressure from industry experts and politicians.
Last month, a Labour policy document warned of the “damaging” impact of exit fees.
The Association of British Insurers has committed to uncovering the extent of the problem, with Hargreaves Lansdown head of pensions research Tom McPhail urging providers to enter an “amnesty” on exit penalties.
Pensions minister Steve Webb subsequently warned insurers their “battered” reputation will be further tarnished unless they tackle the issue.
Speaking to Money Marketing, Aviva UK Life chief executive David Barral (pictured) says: “We are going to look at the exit fees we have got in our back book. We do not believe this is a big issue for us but we are going to review it.
“If we find cases where the charge has not been made clear or is unfair to the customer, we will look to put them into the position they should be in.”
However, rival provider Skandia says it has no plans to lower exit fees on old pension policies.
A Skandia spokesman says: “This is not a big issue for Skandia. Approximately 0.5 per cent of our policies are pensions with any kind of exit penalty.
“The terms of these contracts were fully disclosed at the point of sale and designed to exist for the lifetime of the product. We will not be disclosing the value of these policies but it is a very small fraction of our overall book.
“Skandia is not currently considering a review of its old policies.”