News Article Published:
Thursday, 15 May 2008
Category:
Insurance
Some 40 per cent of firms are keeping customers in the dark with their insurance marketing, the Financial Services Authority (FSA) has claimed.
According to the authority's head of insurance Sarah Wilson, a "significant minority" of firms are providing customers with unclear and misleading life insurance and annuity literature.
Recent findings from the FSA also indicate that there is a 20 per cent difference between the best and the worst annuity rates on the market.
Ms Wilson claimed that the number of firms failing to meet the regulatory standard was "disappointing".
"Almost 40 per cent of the wake-up material does not meet regulatory requirements," she said.
"A significant number of firms have improvements to make if they are to meet the December 2008 treating customers fairly (TCF) deadline," Ms Wilson added.
Meanwhile the FSA report also finds that almost two-thirds of savers will end up buying an annuity with their existing pension firm even if it offers a poor deal.
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