Advisers have criticised insurers for not offering a cohesive approach to dealing with pipeline pension term assurance business following the Chancellor’s pre-Budget report last week.
Lifesearch head of protection strategy Kevin Carr says the pipeline PTA situation is in complete disarray, with providers applying different procedures or not confirming their stance almost a week after the announcement was made.
Estimates of the number of cases in the pipeline have risen from 30,000 to 100,000.
Aegon Scottish Equitable has pledged to continue writing PTA business on the und-erstanding that if the Chancellor backdates the abolition of tax relief to December 6 in his Budget next year, then Aegon will bear the cost of the basic-rate tax relief in the int-erim period.
Norwich Union is offering free life cover on a temporary basis for those in its pipeline and Liverpool Victoria is continuing to underwrite cases on a gross premium basis.
Threesixty is calling for all providers to continue writing the business on a tax relief basis while recognising this may be clawed back at a later date.
Carr says: “The pipeline situation right now is a complete mess. There is no continuity, no joined-up thinking and the adviser is left picking up the pieces for their customers.”