Several years ago members of the Chartered Insurance Institute thwarted a move by the Institute of Bankers to take over the CII by the back door.
For years a number of industry personalities have been pointing out that the bankers wanted our market place, our clients and the insurance companies' money.
“Coalescence” is the last thing that insurance needs with bankers. They are an entirely separate breed with entirely separate principals and motivating forces. Banking and insurance just do not mix. Unless of course bankers want to have 100 per cent of their assets geared to their liabilities as life assurance companies do.
Unless of course bankers want to be constrained in their investments in the way that insurance companies are. And unless bankers wish to give the lion's share of their profit back to their policyholders.
Many of us have seen this coming for over 20 years. The last thing any self-respecting insurance or life assurance professional would wish is to have its product providers trade association reflect the diabolical ineptitudes of the FSA with its catastrophic monopoly on justice and insatiable appetite for rules.
Such a merger would be a bankers charter to run rough shod over the consumer and reduce competition even further than they are managing to do at the moment.
Australia and Canada are prime examples of short-termism in the financial market place carried through by monolithic banking and fund management shortterm views.
This merger can only be born of “nest feathering” of the most myopic type. It should be resisted at all costs.