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Life offices &#39surrendering on referrals&#39

The Association of Policy Market Makers claims it is winning its battle to persuade life offices to encourage customers to sell rather than surrender with-profits endow ment policies.


It says the number of calls it received from policyhold-ers who had been referred directly from life offices increa sed by 25 per cent in the first quarter of this year.


The APMM says 60 per cent of its enquiries in the first quarter were received from policyholders who had been referred directly by life offices.


This compared with 35 per cent in the first six months of 1998.


The announcement follows a submission by the National Consumer Council to the Parliamentary committee scrutinising the Financial Services and Markets Bill.


This calls for the Finan cial Services Authority to be given greater powers to force life offices to inform endowment-holders about the tra-ded endowment policy option.


APMM chairman Lee Portnoi says: “By providing details of the alternative options to customers who are considering surrendering a policy, life offices will be creating goodwill with their customers. The average uplift of selling a policy is 15 per cent over surrender rates.”

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