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Scottish Legal Life closes to new business

Scottish Legal Life has closed its doors to new business.

The Glasgow-based friendly society, which has 175,000 members, had been undertaking a major strategic review.

It had already cut operating costs by axing its direct salesforce last year.

But the firm says the high costs of writing new business and the burden of regulation meant it was forced into the decision to cease to write new business.

It says the costs were proving to be too much of a drain on members&#39 res-ources. The society will now introduce a “radical restructuring” to reduce its costs.

The closure is likely to reignite the debate on the future of smaller friendly societies. The society says the move will result in redundancies among its 150 staff.

Chief executive Gerry Kay says: “We are a small player in the market and our strategic review recognised that the difficulties of achieving economies of scale in a high regulatory environment meant that the status quo was not an option and it was better to act sooner rather than later.

“Major progress has been achieved in cutting costs and restructuring the organisation.

“Financially, Scottish Legal Life is in an extremely healthy position, and our overriding priority has always been to protect the interests of our members.”

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