View more on these topics

NU says policyholders unconcerned by &#39crisis&#39

Norwich Union says mortgage endowment problems have been exaggerated.

It says it has conducted detailed research and has found that no policyholders thought they faced real financial difficulties as a consequence of endowment shortfalls. NU claims policyholders are more disappointed at the possible loss of a tax-free lump sum on maturity.

NU says awareness of the “endowment crisis” is high, with 96 per cent having heard of it. But only 15 per cent were very concerned while 52 per cent were unconcerned, rising to 59 per cent when house price inflation was taken into account. Thirty-six per cent expected a shortfall and estimated it to be £7,661. Seventy per cent of these had taken steps to mitigate shortfalls.

Mori questioned 201 policyholders from various providers in December 2002.

Norwich Union chief actuary Mike Urmston says: “The vast majority of people are aware of what is happening with mortgage endowments and are satisfied with the communications they are getting. There are some concerns but the majority facing a shortfall say the situation will lead to disappointment rather than financial hardship.”

The Consumers&#39 Association senior policy adviser Mick McAteer says: “You would have to live on Mars not to be aware of the endowments crisis. You have to take with a pinch of salt research done by providers. Awareness does not mean that the problem is being properly addressed or that providers are willing to provide redress.”

Recommended

Smee voted top personality

Aifa director general Paul Smee proved he has won the respect of the IFA community as he was named Industry Personality of the Year at last week&#39s prestigious Money Marketing Awards.Smee edged out life insurance analyst Ned Cazalet, Aegon&#39s Stewart Ritchie, Scottish Life&#39s Steve Bee and Ron Sandler to win the award, voted for by […]

Stressful times

Stressful times in the insurance sector are leading companies to search for novel solutions. Norwich Union, always looking to be in the vanguard, gave all its guests at the Money Marketing Awards dinner last week a massage pen.The corporate gift was kindly accompanied by a map of the human body and different stress points. Norwich […]

SHIP sets up home reversion regulation working party

Consumer protection body Safe Home Income Plans has set up a working party to contribute ideas to the consultation for equity release regulation.Ship has set up the working party following the publication in December 2002 of the Working and Saving for Retirement green paper by the Department for Work and Pensions.Ship chairman Jon King says: […]

Energy regulator McCarthy switches to be FSA chairman

The Treasury has appointed Callum McCarthy, currently the chairman of energy regulator Ofgem, as the next FSA chairman, replacing Howard Davies.Chancellor Gordon Brown ended speculation over who would replace Davies, who announced last December that he would be leaving the FSA in September this year to become director of the London School of Economics.McCarthy joins […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment