Analyst Ned Cazalet says insurers spend too much money writing business which will promptly leave their books, meaning that they will make little or no profit.He says the ease in which intermediaries recycle poli- cies to earn more commiss- ion is destroying life office balance sheets. FSA data shows that almost half of all individual policies lapse within four years and 60 per cent of group pensions lapse within three years. Cazalet says commission clawbacks of three years on contracts that will not reach profitability for life offices for 10 years or more leave them open to switching by IFAs and many do this. He criticises the way that insurers disclose sales figures, saying they focus on new business without showing busin- ess persistency rates.
Ship has revealed an increase in home reversion business but a softening of lifetime mortgage sales. Figures released today by the body show the total value of new business written in Q4 2005 was 297.6m, contributing to a total new business figure of 1.1bn for the hole of 2005. The value of written lifetime mortgage […]
The Government is planning to combine its five consumer bodies into one in a bid to improve consumer protection. The Financial Services Consumer Panel, National Consumer Council, Energywatch, Postwatch and Ofcom Consumer Panel will be called Consumer Direct and is currently being rolled out across the country.
Paul McMillan asses the prospects for Ascentric
The FSA is planning to streamline its anti-money laundering requirements as it simplifies the FSA Handbook in March.It will remove the detailed rules on anti-money laundering controls in their entirety, replacing them with high level requirements for firms to put their own risk-based controls in place. The initiative hopes firms will target resources on activities […]
By Mark Martin, Head of UK Equities at Neptune Amid the market volatility in the lead-up to the Brexit referendum, there are buying opportunities for the prudent investor, explains Mark Martin. Click here for full article Important Information: Investment risks This fund may have a high volatility rating and past performance is not a guide […]
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As someone training to be a cricket umpire, fair play matters to Fortitude Financial Planning director Chris Bowmer. Doing the right thing for clients is something he has adhered to from the start of his career, even in a 1980s sales environment with nothing to gain by delving beyond a client’s surface requirements. While he acknowledges […]
Fund managers who have helped pay compensation over the collapse of life settlement bond provider Keydata will receive a £12m refund, the Financial Services Compensation Scheme has announced. Keydata’s management has been embroiled in a multi-million-pound legal battle with the FCA since it collapsed in 2009. The total bill for compensation stands at more than […]
With no employer to fall back on, the self-employed are on their own when it comes to retirement saving. Irregular income patterns can make it harder to save regularly into a pension and commit to locking money away until age 55. Those who are building a business may see that as their biggest asset and […]