Commenting on the Sandler announcements today from HM Treasury and the Financial Services Authority (FSA), Peter Hales, sales & marketing director at Norwich Union Life, said: “Norwich Union was pleased to play an active role in the consultation process."
Commenting on the Sandler announcements today from HM Treasury and the Financial Services Authority (FSA), Peter Hales, sales & marketing director at Norwich Union Life, said:
“Norwich Union was pleased to play an active role in the consultation process, and we look forward to continuing to contribute towards the Government’s thinking. The key challenge is to help close the ‘savings gap’, and as the UK’s largest insurer, we have the manufacturing and distribution capability for these products to be a success. However, we need a workable environment that delivers good value to the consumer, and an economic model that provides for the costs of distribution and manufacture.
“In terms of the sales process, the ‘guided self help’ route is in line with our view, and we believe that this approach will be supported by the consumer research being undertaken by the Government. We believe ‘guided self help’ moves towards striking the right balance between having a more efficient sales process, giving some face to face help to the consumer and maintaining an acceptable level of consumer protection.
“On the issue of the charging structure, we re-iterate that we are against price capping in principle - this distorts and restricts competition in free market economies. But if a price cap is to be set, it must be at a realistic level that generates a reasonable return to shareholders. We remain committed to working with policy makers to identify an appropriate level and shape for the new pricing structure.
“We believe the range of products to be included in the new suite is appropriate, and we particularly welcome the fact that stakeholder pensions will be folded into the product range. We’re also encouraged by the recognition that with-profits has an important role to play; the concept of smoothing of returns is clearly attractive to consumers.
“A key issue moving forward is for the industry to continue to strive to improve the quality of information to, and hence understanding by, consumers. We believe that initiatives such as Raising Standards demonstrate a clear commitment to this end.”
-ends-
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Notes to editors
- Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the leading IFA providers. IFAs provide around 70% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societies and other leading UK brand names including Tesco Personal Finance and The Royal Bank of Scotland Group.
- Norwich Union’s news releases and a selection of images are available from Aviva plc's internet press centre at www.aviva.com/media