View more on these topics

Big insurers just cannot figure it out

Recently, we were arranging a compulsory purchase annuity for someone who had suffered serious cancer of the bladder and bowel.

The big insurance company in the ceding scheme first attempted to apply an £8,000 market value adjuster which I told them I would not accept and a main board director rescinded this within two days despite having been initially advised of my client&#39s serious medical condition.

I was able to improve the figures greatly through an impaired life annuity although this was more complicated than some because unfortunately there were protected rights, it having been a section 32 buyout about a year ago.

The insurance company then caused me considerable difficulties because the head of its claims department seemed to be blissfully unaware of the difference between a compulsory purchase annuity and a substitute annuity and it took me about four attempts to persuade him that his firm would be the purchasers of the policy and had to sign the form.

They told me that forms were automatically returned, which, in fact, happened to us twice, despite being sent recorded delivery.

Later in the week, the same company sent a rep round to see me and, being very anxious for business, I gave her a chance at trying for an IVPP. She asked me whether I would be taking trail commission and what fund it was to be invested in?

The same day, I rang a big composite insurance company which had taken three attempts to get a section 32 quote right. The third attempt had come in just five minutes before but, unfortunately, it does not keep the figures so I had to go through them all again for a fourth try.

I cannot understand why its representative got stroppy with me when I pointed out that he did not need to know my client&#39s smoking habits or employment details.

I honestly believe that if these people had brains they would be extremely lonely.

And so it goes on day after day after day but at least it is not just the insurance companies but that is another story.

BGW Jamieson

Jamieson Financial Management,

Bognor Regis, West Sussex

Recommended

Verity&#39s view

Poor Merrill Lynch. Only very rarely does one feel sorry for a giant US investment bank. But looking at the public statements of this king of global finance after settling Unilever&#39s action for negligence, anyone who lacked sympathy would have to have a heart of ice. The brief joint statement that accompanied the $100m settlement […]

FSA resurrects resilience test as equities steady

The FSA is reinstating one of the resilience tests for life offices that it suspended in the wake of September 11 after deciding that the pressure for unnecessary selling of equities has abated. The regulator withdrew the tests just weeks after the terrorist attacks as it feared that attempts by life offices to meet statutory […]

Autif/FMA merger is set for February

The merger between Autif and the Fund Managers&#39 Association is set to go ahead on February 1, with the new body to be called the Investment Management Association. Autif director general Rich-ard Saunders will head the IMA as chief executive. Current Autif chairman, Standard Life Investment&#39s head of mutual funds Alan Burton, will chair the […]

Out of tune

I am stunned at the revelation of Ron Sandler&#39s view that IFA clients are only satisfied because they think that advice is free when it is really an opaque loan paid for through commission. This is, however, not entirely unfamiliar territory, given that the Treasury and the regulator quite frequently sing from an entirely different […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com