An action group is being formed by the Association of International Life Offices (Ailo) to lobby against German legislation it claims could prevent its members entering the market.
Alan Morgan-Moodie, chairman of Ailo, said the draft legislation suggested establishment charges for insurance contracts would have to be spread over five years but if the policyholder surrendered the contract within those five years, redemption penalties could not be imposed. He said even more concerning was that the Government was proposing to implement the legislation retrospectively which means it would apply to existing contracts. Morgan-Moodie said: “None of our member companies have allowed for this or priced for this, so it is a big issue. “There are about half a dozen companies ...
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