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Pru plans clawback crackdown on lapses

Prudential is cracking down on salesmen with poor persistency rates by clawing back commission on policies that lapse in the first two years.

Salesmen will lose all commission on policies which lapse within six months. They will also lose a proportion of commission if policies lapse within 24 months.

Pru did not publish a breakdown of its persistency rates in the PIA&#39s annual persistency report two weeks ago. The company is regulated by the FSA and is not required to give full details to the PIA.

But Pru has revealed that its salesmen had a persistency rate of 90 per cent after one year for regular-premium personal pensions sold in 1985. This compares with an industry average of 86.5 per cent.

For policies sold in 1993, the persistency rate after three years is 76 per cent against an industry average of 66 per cent.


Fimbra lives on as campaigners block final blow

The PIA has failed to wind up Fimbra and is to mail voting slips to 3,600 IFA firms in a second bid to kill off the regulator. At the Fimbra annual general meeting last week, plans to dismantle the regulator were blocked by campaigners. The PIA was pushing for what it called an “elegant wind-down” […]

Actuaries to probe income-drawdown market

The Institute and Faculty of Actuaries is to follow the PIA and IFA Association with its own review of the income-drawdown market in the new year. It is to carry out a detailed survey of the way that income drawdown is sold. It is concerned about the structure of the product and how to develop […]


Travel insurers are expressing concern that the expected ban on travel agents&#39 sales of compulsory insurance, soon to be announced by the Department of Trade and Industry, will backfire and fail to protect the consumer. At present, travel agents account for around 58 per cent of all travel insurance sold, with tour operators notching up […]

Aberdeen looks to expand income trust

Aberdeen Asset Managers aims to double the size of its Abtrust New Preferred Income investment trust to £137m by raising £64m with a new share offer. Money will be raised for the split-capital investment trust by placing an £11m tranche of Abtrust NewPref RPI-linked debenture stock at 108p a unit share and a three-for-two open […]

Guarantees in the retirement income market

Lorna Blyth, Royal London  Do guarantees benefit customers and, if so, when? To answer this conundrum we commissioned Millimans, a global actuarial consulting firm, to conduct an independent review of the UK retirement income market and whether guarantees really do offer customers better value for money. The brief The study was one of the most comprehensive undertaken […]


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