The Association of British Insurers is disappointed the Treasury select committee's report into endowment misselling does not recognise extensive changes in the industry and regulation, and does not focus on how to boost savings in the future.
ABI's director general Mary Francis says the industry has made clear its regret that customer communications and sales practices in the past were not better and has confirmed member companies will be improving their communications with the 5.5 million endowment mortgage policyholders.
As the Treasury select committee publishes it report into the mortgage endowments crisis the ABI says it is revising its industry code of practice on endowments and is looking to provide more and better information for customers to help them take action if they face potential shortfalls.
Francis: “The FSA has recently re-confirmed that the existence of a potential shortfall is not itself grounds for a complaint. Millions of letters from companies, backed up by widespread and repeated publicity, have ensured that customers are aware of their rights and how to complain if they wish to do so. If customers feel they were given misleading advice about their policy, and have lost out as a result, they can and should complain. Independent research for the FSA shows that customers understand and appreciate this point.
“Today's report is the precursor to a broader inquiry into boosting confidence in the long-term savings industry. The industry is looking forward to working with the Committee on this more forward-looking inquiry.”