29 June 2007
COMPLAINTS ABOUT POOR ADMINISTRATION BY INSURANCE
COMPANIES RISE 43%
Complaints to The Pensions Advisory Service (TPAS) about poor
administration in personal pension arrangements have risen by 43%
in the last financial year whilst, in the same period in sharp
contrast, similar complaints against company (occupational) schemes
fell by 12%.
In its annual report "Advising on Pensions: a Review of
Activities 06/07" published today, TPAS says it is pleased to note
the apparent improvement in standards in occupational schemes but
regrets the lack of concern for the needs of customers being
demonstrated by some insurance companies in relation to personal
pensions.
"The worst offenders", says TPAS Chief Executive, Malcolm
McLean, "are insurers who are closed to new business. The unit is
often under resourced and there is little or no discernable
customer service ethic in place".
He suggests that if the insurance industry does not voluntarily
tackle the problem, the regulatory authorities should intervene on
behalf of consumers who, he says, are usually unable to extricate
themselves from these policies except "at great financial
cost".
The report contains factual information, case examples and
comment about TPAS' work during the year. It details some of the
major issues consumers have raised with it both through its
helpline and in correspondence. These include:
- transfer incentives
- lost pensions
- contracting-out mis-selling
- closure of final salary schemes
- general complexity
Other statistical data compiled within the report shows
that:
- the number of complaints referred to TPAS in the year went up
from 5,596 to 6,821, an increase of 15%
- poor administration was by far the greatest source of
complaints, accounting for 31% of the total
- other types of complaint included scheme closures, early
retirement, ill-health pensions, clarification of entitlement, poor
advice and transfers
- 91% of complaints were resolved - up from 88%
- calls to the Helpline fell slightly but total enquiries
(including emails) increased from 61,530 to 61,644
- the number of visitors to the main TPAS website rose from
264,763 to 404,010, up a staggering 53%
