Tag Archives: Life and Health Insurance (TRBC)

UK watchdog to clamp down on insurance loyalty penalties

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LONDON, Feb 18 (Reuters) – Britain’s Financial Conduct Authority said on Tuesday it was finalising “remedies” to stop home and car insurance companies penalising loyal customers.

The watchdog said the “loyalty penalty” cost longstanding customers an extra 1.2 billion pounds ($1.56 billion) in 2018.

More than four in five adults in Britain have one or more insurance products, and consumers who stay with their existing insurer at renewal almost always pay higher premiums than those who switch or negotiate, the FCA said in Sector Views, its annual review of key concerns for the year ahead.

The FCA also said high-risk retail investment products were exposing consumers to more risk than they can absorb, the FCA said.

“Some of the highest-risk products are often marketed directly to retail consumers with poor communication of the risks involved and implications that the investments are regulated, when this is not the case,” it added.

Many new payments firms had been able to enter the market and grow quickly, and some of their products had offered no protection for consumers.

Sector Views are used by the FCA to shape its business plan for the coming financial year and determine whether to open new market investigations and use its powers to intervene.

$1 = 0.7696 pounds
Reporting by Huw Jones; editing by John Stonestreet

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Italy’s Cattolica says submitted provide for UBI’s insurance coverage arm

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MILAN, Aug 9 (Reuters) – Italy’s Cattolica Assicurazioni has offered a non-binding provide for the life insurance coverage companies of UBI Banca, Chief Govt Alberto Minali stated on Friday.

Minali stated the provide was offered in June and that Cattolica was vying with different bidders for the division.

“We’re working to current a binding provide within the subsequent few weeks,” Minali stated.

Italy’s fifth-largest financial institution is trying to promote roughly 60-70% of the unit which incorporates stakes in a collection of three way partnership platforms with the likes of British insurer Aviva, sources have advised Reuters.

Primarily based in Verona, Cattolica Assicurazioni focuses on bancassurance merchandise and is hoping to take management of its current life insurance coverage partnership with UBI in addition to the opposite belongings on the market, the sources stated.

UBI has employed KPMG to public sale off the belongings and desires to obtain binding bids in direction of the top of September, one of many sources stated.

Minali stated any deal must be “worth accretive” for Cattolica and primarily based on an inexpensive monetary valuation of UBI’s enterprise enterprise. (Reporting by Silvia Aloisi, enhancing by Isla Binnie)

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