All articles by LII editorial
LII editorial
FSA faces consumer responsibility discussion paper backlash
The UKs Financial Services Authority (FSA) has entered a minefield with the launch of a discussion paper on the level of responsibility consumers must assume when entering into a contract with a financial services provider The paper is the subject of harsh criticism by, among others, the Financial Services Consumer Panel (FSCP), the FSAs own watchdog body. The discussion paper follows a recent report on the FSA undertaken by the National Audit Office in which it recommended: The FSA should identify the responsibilities it wants consumers to take on when interacting with the financial services markets and how its financial capability programme, alongside other regulatory activity, will help to equip consumers for these responsibilities.
UK insurers go from boom to gloom
UK insurers entered 2008 with what had been one of their most successful years ever behind them But 2008 soon proved to be anything but an easy ride, and while UK life insurers acquitted themselves well they continue to face market conditions likely to test their mettle to the full in the months ahead The year 2007 was a golden one for UK insurers with the industry surging ahead to garner 11.4 percent of total global premium income and become the second-largest after the US
US employers feel the pinch
With their profits under pressure many US companies offering health insurance benefits are feeling the pinch as group health insurance costs continue to soar. .
Egg joins growing number of institutions in PPI mis-selling
UK online bank Egg Banking (Egg), a unit of US bank Citi, has joined a growing number of financial institutions to fall foul of the Financial Services Authority (FSA) for mis-selling payment protection insurance (PPI).
Conseco provides a boost for Unity Life’s Canadian strategy
Recently demutualised Canadian insurer Unity Life is to acquire US insurer Washington National Insurance Companys (WNIC) Canadian block of occupational disability insurance. The sale, for which no financial details were provided, marks WNICs parent company Consecos exit from the Canadian market.
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Allianz radically restructures Dresdner sale
Announced on 31 August 2008, a deal that would have seen German bank Commerzbank acquire full control of European insurer Allianzs Dresdner Bank unit in two phases has been radically restructured Under the original agreement Commerzbank was to have acquired 60.2 percent of Dresdner from Allianz at the beginning of 2009 and the remaining 39.8 percent in the second half of 2009. Under the revised deal Commerzbank will now at the beginning of 2009 acquire 100 percent of Dresdner for which it will pay Allianz 3.215 billion ($4.2 billion) in cash and 163.5 million Commerzbank shares, the latter equal to an 18.4 percent stake in Commerzbanks increased share capital.
Conseco faces closure in Florida
The Florida Office of Insurance Regulation (FOIR) has thrown the book at Conseco, alleging that the US life insurer is guilty of mismanagement and withholding information vital to performance of the FOIRs regulatory duties.
Royal London enjoys the spoils of Resolution Life victory
Royal London, the UKs largest mutual life insurance and pension company, has taken its place amongst the top three providers of individual life protection insurance in the country This development comes as a sequel to a fierce battle in late-2007 for control of Resolution Life between closed life insurance fund manager Pearl Group and UK Standard Life which ended in victory for Pearl. For Royal London, Pearls partner in the bid for control of Resolution, the spoils of victory were the new individual life protection business operations of two Resolution units, Phoenix Life Assurance and Scottish Provident.
Americans buckling under cost strain
The number of Americans inadequately insured against medical expenses is growing alarmingly, warns the Commonwealth Fund (CF), a charitable foundation focused on promoting healthcare in the US In its 2008 Biennial Health Insurance Survey the CF found that between 2003 and 2007 the number of underinsured adults with incomes of 200 percent or more of the federal poverty level ($40,000 per year for a family), nearly tripled from 4 million to 11.4 million.
News Briefs
CSC joins forces with LOMA in India… Hanover Insurance exits life industry… ING closes Mexican sale…