View more on these topics

Life firms are milking the system

The editor’s comment of the week

Relating to Money Marketing’s online article, FOS raises concerns over whole-of-life policies, Eleanor Downie (FCII) and myself raised this question 12 months ago.

We carried out some basic research across several companies and found a wide diversity of approach by insurers.

Regulatory and statutory constraints work against guaranteed products (fixed sum assured/fixed premium with accumulating surrender values) and yet provide little guidance for underwriters.

The difference in treatment of published and what now appear to be increasingly popular “annual” reviews.

There is no doubt in our minds that certain life companies are milking the system and effectively “dumping’ older lives in order to improve their balance sheets from increased premium income and reduced risk.

The regulator knows and ignores the symptoms and the disease. It has to be stated that some companies not only honour their contract terms but communicate effectively and in the life assured’s best interests.

The whole of life insurance market requires a sensible detailed appraisal before yet more damage is done to a very important sector of the life assurance industry.

Terence O’Halloran


Soros fails to quash insider trading conviction

Hedge fund billionaire George Soros has lost his case to have a criminal conviction for insider dealing quashed. Soros (pictured) was convicted of insider trading and sentenced by French courts after his Quantum Fund made a profit from investing in the stock of Société Générale in the late 1980s. French financier Georges Pébereau and a […]

Scale force

Nest has set off a big debate among pension experts and one conclusion is a slam-dunk – pensions need scale. The low costs Nest offers are only possible with giant scale. The National Association of Pension Funds and others think that super trusts, along similar lines as the Australian model, could consolidate thousands of small […]

New register will boost standards

The Institute of Financial Planning’s register of accredited financial planning firms got off to a great start at the IFP conference this week with the announcement of the first 25 firms to gain this prestigious title. This development spearheads the next stage for the financial planning profession and brings together all the components which will […]


Will the MPC trigger QE tomorrow?

Revisions to the growth of the UK economy make it more likely the Bank of England will launch another round of quantitative easing in the near term, says Howard Archer, the chief UK and European economist at IHS Global Insight. Following changes to its GDP methodology, the Office for National Statistics today revised down its […]


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. Any adviser who arranged a WOL policy must have been aware of the fact that the premiums were reviewable, particularly those based upon LAUTRO assumed expenses. Of course this does not apply to ALL WOL policies but that message will not get through to those consumers who may have already decided to cancel their very valuable life cover. Is this the way regulation is supposed to work?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm