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‘Complaining through CMC can halve compensation’

Consumers receive more than double the payout for an endowment claim if they go direct rather than use a claim firm, according to research from the Association of British Insurers.

It says policyholders complaining through a claim management company receive an average £1,400 compared with £3,200 when individuals complain themselves.

The research shows that 71 per cent of complaints made direct this year have been upheld compared with 51 per cent of claims received through a CMC.

The FSA produced research this week indicating that the industry has now paid out £2.7bn in redress to more than 1.8 million consumers over endowment complaints.

The regulator also announced improvements in firms’ complaint-handling procedures, with 14 of 22 firms the FSA had concerns about taking remedial actions to improve processes.

ABI director of life and pensions Chris Kenny says: “It is absolutely clear policyholders get a better outcome when they complain direct. Policyholders should understand there is a fair and entirely free system in place. CMCs add no value to the process yet charge a hefty fee for doing so.” corporate relations director Ian Allison says: “The ABI’s data is questionable, to say the least. We have always stated to clients that they have the option of doing the claim themselves, and/or using the Financial Ombudsman Service.”


Basic injustices

Many women are finding they have paid unnecessary voluntary NI contributions

Maison d’être

As increasing numbers of people look to buy second homes abroad, many brokers believe that strategic partnerships with lenders will help them develop their business in this growing market, says Annie Shaw

Come on board at Ship

Having read Nic Cicutti’s article of November 23, I wanted to write in support of the theme he explores that IFAs should grasp the nettle and make the necessary preparation for involvement in the equity-release market. As Nic correctly points out, demand for this product type is set to expand as the baby boomers age […]

Greece: the sideshow continues

Artemis managers James Foster, Mark Page and Laurent Millet comment on the Greek deal, describing it as “just another fudge” getting in the way of bigger developments in China, the UK and the US. To read the full article click here.


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