Zurich Life is the next of the life insurance companies to close its doors to new business with effect from August 27th although the company has said existing policyholders will not be affected.
Zurich Financial Services made the decision and announced it along with their decision to sell the company for £287.5m to Swiss Re. In announcing the closure and subsequent sale, Zurich's Chief Executive said, "we are sharpening our focus, reducing expenses and strengthening our overall capital position".
Our View:
Zurich Life has generally provided protection products to policyholders. This means that in terms of pure protection policies, customers are unlikely to be affected because investments do not have to be managed to produce returns.
However, this is where the slickness of policy administrations comes to the fore, especially where people need to claim.
The other side to watch is where your premiums are subject to regular reviews in terms of premiums and the cover provided. If your premiums start increasing or cover reducing, you need to seek independent advice in terms of how competitive it is.
Have you got a Zurich Life policy? Worried? Need some some help? Visit our Help Zone.