08 May 2008
Results from a Financial Services Authority (FSA) investigation
look set to show that 40% of letters sent by life insurers are
below standard and are not informing customers how to find the best
pension payouts. Consequently, two-thirds of people nearing
retirement are buying a pension from their existing provider, even
if it is not the best deal available to them.
It is understood that the FSA is facing increasing pressure from
the Financial Services Consumer Panel to fine the companies as well
as naming and shaming them.
A spokesman for the Association of British Insurers (ABI) said
they were working hard to address the problems. He added: "We
accept that standards aren't good enough. But it takes a long time
to turn around an oil tanker and we are working with companies to
improve their communications."
