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FSA concerned over life insurance cover

Date: Mon, 12 Jun 2006

The Financial Services Authority (FSA) has raised concerns that some life insurance and critical illness policy holders are not being offered the best deals.

The FSA's recent investigation into the industry discovered that some customers are being given poor advice and may be refused potential payouts because of confusion over what policies cover.

In particular, some providers and financial advisers failed to explain the details of cover and failed to assess if the policies were the most suitable for clients. This meant that up to 25 per cent of claims were rejected by insurance companies.

Principal policy adviser Mick McAteer, said: "We predicted that the mis-selling we saw in the pensions industry would be displaced into the protection business."

"Protection policies, by their nature, are complicated and the advisers selling them are often putting their commission before the needs of their clients," he added.

Anyone planning to purchase a life insurance or critical illness policy is advised to make sure they double-check the small print and ensure they are purchasing cover that is suitable.


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Endsleigh Insurance Services Limited is authorised and regulated by the Financial Services Authority. This can be checked on the FSA Register by visiting its web site at www.fsa.gov.uk/register.
Endsleigh Insurance Services Limited. Company No: 856706 registered in England at Shurdington Road, Cheltenham Spa, Gloucestershire GL51 4UE.