Wednesday, February 27, 2008

Sauce For The Goose

Sauce For The Goose

It is refreshing to read for once a story about a life assurance company suing a broker for mis-selling, rather than an endowment policy holder suing a broker or life assurance company.

In this particular case Standard Life sued brokers Aon for advising it to take out the wrong indemnity insurance, to cover claims for mis-selling of mortgage endowments policies.

I would venture to suggest that had they not mis-sold the policies in the first place, they would not have needed to take the cover out!

Standard Life won the case and stands to gain £75M, the final amount will be determined at another hearing.

The judge ruled that Aon had been negligent, as no reasonably competent broker could have concluded that Standard Life's needs were clearly met by the policy.

I can't but help feel a small amount of shadenfreude over this.

Now at least one life insurance company may know what the millions of us, who were sold these useless underperforming endowments, feel like.

Monday, February 18, 2008

Norwich Union - Eligibility For Reattribution Payment

Norwich Union - Eligibility For Reattribution Payment

In order to find out whether your with profits Norwich Union policy is eligible for a Reattribution Payment, please visit this site.

Thursday, February 14, 2008

Which? Campaign Against Norwich and Prudential

Which? Campaign Against Norwich and Prudential

Which? has launched a campaign against Norwich Union's and Prudential's plans for reallocating the assets of their respective inherited estates.

Which? does not mince its words, and refers to the schemes as "rip offs".

"Which? is calling on the Financial Services Authority (FSA) to act to prevent £7 billion of with-profits policyholders’ money being 'reallocated' to shareholders.

Without a change in FSA policy, millions of Norwich Union and Prudential policyholders could lose out. Which? believes it is unacceptable for the Government and FSA to stand by and do nothing to stop this smash and grab raid

Which? are asking for people who hold with profits policies with Norwich Union and Prudential to contact them at

I have a policy with Norwich Union, and most certainly be in contact with them.

Wednesday, February 06, 2008

Norwich Union Windfall

Norwich Union Windfall

Some good news for over a million Norwich Union endowment policyholders. They have been promised a share of a £2.1BN arising from Norwich's "orphan assets" or "inherited estate" surplus.

Norwich Union has agreed to hand back almost half the £5.4BN surplus in its two main with-profits funds.

Individual payouts will vary, depending on the size of investment and how long it has been in force. However, projections indicate that policyholders should see the value of their assets increase by 10% by 2010.

It is also estimated that approximately 50,000 holders of Norwich Union mortgage endowment policies, currently projected to shortfall, will be reassigned a "green light" over the next three years.

Policyholders will receive 90% per cent of the £2.3 billion being distributed. The remaining 10% will go to shareholders.

Norwich Union have tabled a separate offer of a cash payment to policyholders in exchange for renouncing their claims on the rest of the estate (£3.1BN).

Clare Spottiswoode, the policyholder advocate responsible for securing the best deal for Norwich Union customers, is not entirely happy with the arrangement. She is quoted in the Times as saying:

"The money is available now, so how on earth can it be fair to deny it to policyholders now?"

She also called on Norwich Union to backdate payouts to cover customers who have cashed out of policies since November, when Norwich first said that it would press ahead with a distribution.

IFA's who have paid out compensation, because of Norwich Union's mis-selling of endowment policies, are also not that happy. They are asking why, if the policies now look like thy are going to revert to surplus, should they have been penalised.