Norwich Union Reattribution News

Norwich Union Reattribution News

The FSA has been accused of creating a “conflict of interests” between policyholders hoping to benefit from inherited estates.  Clare Spottiswoode, policyholder advocate for Norwich Union, has said that policyholders were “clearly not being treated fairly” by insurance companies and the regulator should be doing more.  She also said common practice among companies that accumulate excess inherited estates was to distribute 90 per cent of the money to policyholders and 10 per to shareholders.  She criticised the FSA for having no firm regulation regarding this ratio.

FSA chief executive Hector Sants, said “We have principles here and I completely reject that we are not trying to deliver a fair deal for the policyholders”.  Spottiswoode expressed concern about insurers using inherited estates to subsidise new business and pay off shareholders’ tax.  

Our view

We agree and suggest the FSA should stand up and be counted by offering firmer rules on what firms can use the inherited estates for, calling for an end to funding new business from the money.

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