Co-operative Insurance Society has hit back at criticism of the
home-service financial services industry.
It is concerned that all companies with a home-service division are being
tarred with the same brush.
The FSA says industrial-branch products are poor value and customers
should be wary of them.
Labour MP Jim Cousins and Liberal Democrat MP Vincent Cable have called
for the FSA to conduct an invest igation into the sector.
The Co-op says 98 per cent of its new business covers products such as
Isas, unit trusts and with-profits bonds.
It says customers like products that are “delivered in the comfort and
convenience of their own homes”.
Figures for 1998 show CIS had £1.7bn in life insurance and pension funds
under management, with only £140m from industrial-branch business.
CIS general manager Martin Clarke says “It is important not to confuse
customers by suggesting that those insurance com-panies which provide a
service to people in their homes only offer industrial-branch business.”