View more on these topics

Supermarkets shun questions over cover

Sainsbury’s responds to survey but no reply from Tesco, Asda and Boots after one month

Three out of the four retailers contacted about their life insurance sales processes have not responded to basic questions a month after they were posed by Money Marketing.

On December 20, MM put six questions to Tesco, Sainsbury’s, Asda and Boots, asking them about key campaign themes – their complaint-handling procedures, claim statistics, cost and comprehensiveness of cover, inheritance tax and assessing customers’ financial knowledge.

Sainsbury’s Bank, underwritten by Legal & General, is the only retailer to have submitted a response after four weeks of chasing the firms.

Sainsbury assumes that customers will already have sufficient knowledge of their protection needs before buying direct and stresses that customers can complain through its own complaints department or, if still dissatisfied, seek redress from the Financial Ombudsman Service.

Sainsbury’s Bank spokesman Phil Anderson says: “There is no evidence to suggest that by switching to the bank, people will necessarily get less cover. The bank’s life insurance product offers good cover. People who buy their life insurance direct should know what sort of cover they need.”

He says the bank’s key features document recommends seeking IHT advice if required.

Asda Life told MM on December 21: “Our financial services team are looking at these questions as we speak. I will get back to you as soon as we have res-ponses.” As yet, no response has been received from Asda.

Tesco and Boots have so far failed to acknowledge the enquiry.

Recommended

Product providers are warned of Mifid sales slump

PricewaterhouseCoopers is warning product providers to expect a significant drop in sales in the final quarter next year as advisers str- uggle to comply with the European Union’s Markets in Financial Instruments directive. PWC says providers should anticipate a slowdown in business similar to the interruption caused by the introduction of mortgage regu- lation last […]

CML hits out at government tax policies

Home-owners are over 10bn a year worse off than in 1994 because of the Governments tax policies, says the CML. Twelve years ago, tax relief on mortgage interest and income support paid to home-owners outweighed stamp duty payments and inheritance tax, meaning they were net gainers to the tune of 2.6bn. But they are now […]

FSA probes advice on cashing in WP

The FSA is running an investigation into the with-profits sector amid fears that advisers are not knowledgeable enough to advise clients on whether to cash in policies. The regulator says it has received anecdotal evidence of poor advice and a failure to move beyond the dogma that open funds are good, closed funds are bad. […]

Product matters : A realistic Venture

In what could turn out to be an even busier year than 2005 for the VCT industry, it is refreshing to see quality names launching and being realistic about the amount of money that they want to raise and invest. Aberdeen has launched its C-share issue this week for the existing Aberdeen growth opportunities VCT […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment