Compensation will be paid to policyholders of unit-linked funds from Norwich Union, after the group failed to disclose all of its charges.
Mistakes were found on some of their unit-linked funds after a review of the way the company reveals their charges and other expense ratios in October. To correct the mistake, Norwich Union intends to refund the charges back to affected customers by increasing their individual policy value. This will mean that approximately 70,000 unit-linked policyholders will see an increase in their policy value, of around £90 on average.
The group will be writing to affected customers over the next three months to advise them of the error, and to inform them when their policy value will be increased. Investors do not have to take any action themselves.
Our view
Very commendable of NU. They have discovered a problem and they are resolving it. You can ask no more of them.