Treasury calls for evidence in orphan assets inquiry

The move comes following a number of high profile reattribution cases involving AXA, Prudential and Norwich Union. Orphan assets, worth billions of pounds, accumulate because every year insurers can withhold a portion of policyholders’ payments to smooth returns. Despite these funds being contributed by policyholders, some insurance companies have been criticised for using a portion for the benefit of their shareholders rather than policyholders. In 2000, AXA only paid out 31% of its inherited estate to policyholders, which prompted the FSA to create the post of Policyholder Advocate....