London: Britain’s financial watchdog is investigating six insurance firms including Prudential and Old Mutual over their treatment of long-time life insurance customers.
The other firms involved were Abbey Life, Scottish Widows, Countrywide and Police Mutual, the Financial Conduct Authority (FCA) said.
The financial watchdog has been monitoring whether insurers have treated customers locked into pension and other savings plans fairly compared with new customers.
As part of this assessment, the FCA sampled a number of documents sent to customers who had requested either to surrender or transfer their policies. The FCA said the six firms may have failed to inform customers of charges they were likely to incur.
“The practices at some firms appear to have been poor,” acting FCA chief executive Tracey McDermott said yesterday.
An investigation could lead to the FCA imposing fines or demanding insurers pay compensation to policy holders.
Old Mutual, Scottish Widows and Countrywide Assured owner Chesnara said they would co-operate fully with the regulator.
&uuid=(email))