View more on these topics

Brokers in legal threat as Pru pulls protection plug

A leading protection broker is threatening a class action law suit against the Prudential after it raised premiums and withdrew guarantees on new and pipeline critical-illness business.

Many IFAs are outraged and are vowing never to place business with the Pru again. Thousands of cases are affected by the move even though many applications were sent in months ago but delayed in an admin backlog.

National broker Lifesearch is instructing its solicitors, Whitman Breed Abbott & Morgan, to investigate a potential class action against the Pru and is urging all IFAs to contact the law firm to get involved.

This week, the Pru said that from April 17 it will be raising premiums and will stop writing guaranteed business in favour of reviewable rates. But it is the fact that it has decided to apply the measures to business that is still in the pipeline that has infuriated IFAs.

The Pru has refused to say what the average premium increase will be, saying each case will be determined on its own merits.

Pru has been the leading protection provider in recent weeks as other firms hiked premiums.

In an attempt to smooth over the policy change, the company is offering immediate 30-day free life and critical-illness cover worth up to a maximum of £100,000 to cases yet to receive an acceptance letter or who have yet to confirm their acceptance.

Lifesearch spokesman Kevin Carr says: “We are asking all affected parties to join forces in order to better hold the Prudential to account for its actions by seeking redress for losses of both clients and intermediaries with business in its pipeline.”

On the legal threat, Prudential spokesman Darragh Leeson says: “That is a matter for the company concerned and we would not comment any further.”

•IFAs&#39 anger, p2


Product matters

The geared upside phenomenon keeps escalating and this time, Nvesta, formally known as Eurolife, has launched two six-year tracker plans. The first, the quad tracker plan, offers four times the upside of the FTSE 100 subject to a maximum of 80 per cent while the second, the super tracker 30, is offering a return of […]

Ingledew to be chief exec in BBB shake-up

Chief executive Cliff Lockyer is to become chairman of national IFA group Berkeley Berry Birch in a board shake-up, with his deputy Stephen Ingledew becoming chief executive. The group has tried unsuccessfully since the start of the year to attract a non-executive chairman to replace Sir Jeremy Black, who retired at the end of 2002. […]

Survey shows just 10% of IFAs plan multi-ties

Only 10 per cent of IFAs plan to multi-tie some or all of their business while 68 per cent say they plan no changes after depolarisation at the end of the year, according to George Street Research. The survey, conducted for Money Marketing, confirms that the majority of IFAs do not plan to give up […]

Schroders says Brown is overly confident on growth

Schroders says Chancellor Gordon Brown&#39s seventh Budget contained few surprises for the wider economy other than false optimism for growth in 2004 and 2005. UK economist Stuart Block says the revised growth forecast for this year down from 2.5-3 per cent to 2-2.5 per cent is generally good for the investment sector. But he fears […]

Guide cover

Guide: how to… communicate with your pension members

Effective communication of your pension scheme is a large part of getting auto-enrolment right. Delivering the same message to all employees is not necessarily the way to go. To assist you with the communication of your pension scheme, we have provided some key areas to think about, such as:

  • What to consider when segmenting your workforce
  • How to communicate to pension scheme members at the right time in their member lifecycle
  • What topics you should be discussing with your pension members
  • The new pension freedoms and the importance of communicating them


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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