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McFall welcomes Pru colour-coded letters

Treasury select committee chairman John McFall has praised Prudential for taking action to demystify financial services for consumers by mailing colour-coded reprojection letters.

Following the TSC’s inquiry into Restoring Confidence in Long-term Savings, it pressed insurers to take more responsibility for making sure consumers understand the value of their endowment policies.

Prudential has already issued 200,000 letters using the new design. The first paragraph of all reprojection letters is now colour-coded. A red paragraph indicates a significant shortfall, an amber paragraph indicates a shortfall and green indicates no shortfall.

McFall says: “We have seen some very welcome steps towards demystifying financial services. We need to make sure that consumers are receiving the information needed. Prudential has implemented colour-coding of reprojection areas.”

The select committee’s MPs accused life companies of complacency towards policy holders and poor customer service. The industry has been accused of dragging its heels in responding to the committee’s recommendations and hesitancy over designing product summary boxes.

McFall will take the lead chairing the first few meetings of a cross-industry forum which is designed to boost confidence in the savings industry.

Prudential spokesman Paul Keeble says: “It is obviously early days but early evidence indicates we are getting more people seeking advice as a result of the initiative.”

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