Monday, July 23, 2007

Stating The Obvious

Stating The Obvious

Congratulations to Baronworth Investment Services, who have stated the obvious; namely that a "degree of disillusionment" among endowment policy holders is a key factor in the decision to sell or cash-in.

Colin Jackson, director of Baronworth Investment Services, sates:

"There's a lot of adverse press about endowment policies, some of it quite justified."

No kidding!

Friday, July 20, 2007

The Cost of The Endowment Scandal

The Cost of The Endowment Scandal

The endowment mortgage scandal continues to ratchet up costs.

The Financial Services Compensation Scheme (FSCS) said that it handled 31,260 claims during the year to the end of March 2007, 21% more than during the previous 12 months.

FSCS said that 90% of the new claims it received related to endowment mortgages, with people unable to claim compensation for being mis-sold one of the mortgages because the firm or intermediary they bought it from had wound up.

Around 50% of those who complained about their endowment received compensation, getting an average of £1,900 each.

Overall the FSCS paid out £149M in compensation, around £66M of which related to claims about general insurance, with the rest going to claims over endowments, personal pensions and other investment issues.

The costs will continue to mount.

Monday, July 16, 2007

Bad Management and Inept Regulation

Bad Management and Inept Regulation

A recent article in the Daily Telegraph about the ongoing endowment scandal, hits the nail firmly on the head when it comes to the question as to why these useless products have performed so badly.


-Bad management from the insurance companies

-High costs levied by the insurance companies for their bad management

-Inept regulation from the FSA, forcing the insurance companies to invest in under performing assets.

No wonder the hapless endowment policy holders feel that they have been screwed!