BRITISH INSURERS are thought to be joining Amicus, the UK's largest private-sector union, in a united attack against the government's proposed 1% charge cap on a range of low-cost savings products.
According to The Times, the united group will launch a campaign this summer in opposition to the government’s plans to price cap products such as stakeholder pensions.
Although talks are supposed to be going on in secret, two firms yesterday admitted to The Times that they are in talks with the union about the campaign.
A spokesman for Norwich Union said: "We cannot confirm Amicus’ approach, but we can say that we would be supportive of the campaign. We need a cap that gives a fair return. The products have got to be attractive to buy and to sell."
A LOWER REVENUE stream due to the price cap is not the only trouble facing the industry: a new report suggests mortgage endowment complaints are costing British insurers £24m a year, reports .
Figures from the insurance industry suggest endowment complaints being handled by the Financial Ombudsman Service amounts to an average of more than £1m per company for the top 20 insurers.
Scaringly, this is just the tip of the iceberg, writes the paper, as Britain's biggest insurer, Norwich Union, for example, announced that only about 8% of its complaints reach the Ombudsman.
The FOS is expected to receive some 100,000 complaints in total for the year to 31 March. Some 60,000 will be related to mortgage endowments. However, the Ombudsman is only picking up about 40% of complaints, and this number could fall to 35% "as firms are gearing up to follow procedures properly" says spokesman David Cresswell.
STAYING IN the world of mortgages, a survey has found recent rises in house prices are forcing one in four first-time buyers to wait six years before buying their own home, says The Scotsman.
Furthermore, the finding, which comes from research commissioned by Bradford & Bingley, also suggests 51% of the UK population believe house prices are rising faster than they can save.IFAonline
First mentioned in Cridland Report
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