After much speculation, Swiss Life confirmed recently that they have been unable to find a buyer for their UK operations. They have now decided that they will not accept any new business from individuals. This basically means that one side of the business has been closed.
In terms of group applications, it is business as usual and Swiss Life is continuing to accept applications. A decision whether to close to new business will be made by mid August. In terms of how Swiss Life will be run for the foreseeable future, the individual side of the business will continue to be administered, as will all existing policies. The group side will continue as normal until a buyer can be found. If a buyer cannot be found then this side may also be closed to new business.
Swiss Life have issued the following reassurance: All existing individual policies will remain secure. Any future valid claims will be honoured and administered according to our current high standards of customer service. Policyholders will retain full renewal rights on their existing policies, including for example increment and increase options. Soft benefits such as RED ARC will remain in place.
All current quotations remain valid as defined under our existing agency agreement.
Our View
If you have Swiss Life policies it might be worth checking the position with them if you have queries. If you have an application pending with them at the moment we would suggest seeking advice as to whether or not to continue with your application. We say this because Swiss Life has not yet announced their intentions for applications currently being looked at.