All articles by Ronan Mccaughey
Ronan Mccaughey
Short-termism’ spells pension danger for UK consumers
A total of 55% of consumers in the UK have revealed they do not have long-term investments, savings, or pensions, according to research commissioned by Skipton Financial Services. The Priority Report’ quizzed adults on their attitudes and behaviour towards spending and saving in the current economic climate of higher inflation and squeezed pay. This found that once consumers in the UK pay for their essentials, such as bills, rent and mortgages, the rest of their money is more likely to go on TV subscriptions, meals out and haircuts, rather than putting it towards a pension.
Skandia UK appoints new head of protection
Jefferies will focus on developing the protection proposition and strengthening Skandia’s position in the market. He was previously head of sales and marketing at Ageas Protect and prior to that led the protection and investment marketing teams at Friends Provident.
Customer engagement recommendations from LIMRA Europe
LIMRA Europe has recommended that providers reach out to consumers when they are most ready to buy, and offer the option of a needs analysis, as effective ways to engage with potential life insurance buyers. Other recommendations from LIMRA Europe include: offering a personal contact option; contacting clients who recently bought life insurance and reaching out to all generations and all income levels Chris Heath, research manager at LIMRA Europe, explained that LIMRA has been working with US consumers to find out about their attitudes and experiences to life insurance as a financial product.
UK DC members “adversely impacted”
The average British private sector worker saving in a defined contribution (DC) pension scheme has lost £2,750 ($4,384) per annum of their future retirement income in the last twelve months, according to The Alexander Forbes National Pension Index. Carey said: Hopefully gilt yields, which influence annuity rates, will recover to some extent when QE stops, improving annuity rates and reversing the worst of the serious deterioration in the Alexander Forbes National Pension Index over the last year.
The Hartford to divest individual life and retirement businesses
The Hartford has decided to place its individual annuity business into runoff and is pursuing sales or other strategic alternatives for its Individual Life, Woodbury Financial Services and Retirement Plans businesses The shake-up comes as the business has decided to focus on its property and casualty, and group benefits and mutual funds businesses. According to The Hartford, the decision is the result of management and the board of directors’ rigorous evaluation of the company’s strategy and business portfolio conducted over the past several quarters.
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UK budget creates uncertainty over retirement age
The UK governments automatic review of the state pension age, linking it to future life expectancy will create uncertainty for UK citizens as to when they will be eligible to receive their state pension, according to Skandia Responding to UK Chancellor George Osbornes budget, announced on 21 March 2012, Adrian Walker, Skandia’s pension expert, said the automatic review of the state pension age would now make it more difficult for people to plan how much they need to save privately to achieve their desired level of retirement income at the age they want to enjoy it. Walker said: “The age is likely to increase over the years, and the main message for younger people, if they want to enjoy a meaningful retirement, is to build up their savings as early as possible through tax wrappers such as ISAs and pensions so they have an alternative income stream available well before they may benefit from the state pension.
Japan’s Nippon Life acquires 1% stake in AIA Group
Nippon Life has acquired a 1% stake in pan-Asian life insurance provider AIA Group worth approximately US$430 million as at the close of 20 March 2012. AIA Group said Nippon Lifes investment in it would enable the Japanese insurer to participate in the significant growth opportunities available to AIA across its Asia-Pacific ex-Japan life insurance markets, primarily through its proprietary agency distribution channel.
China Life appoints ex-insurance regulator as chairman
Beijing-headquartered China Life has appointed Yang Mingsheng as chairman of China Life, replacing Yuan Li According to news reports, Mingsheng was previously vice chairman of the China Insurance Regulatory Commission (CIRC) He is also said to have worked for about 30 years at Agricultural Bank of China.
Aviva releases 2011 claims figures
Aviva paid more than £439m ($695.7m) to its protection customers in 2011, which includes life insurance and critical illness cover, 7.6% higher than the figure for 2010. In 2011, Aviva made payments for 10,495 life insurance claims and 1,568 CI claims In total the insurer paid 99% of all protection claims (life insurance and critical illness cover)
Friends Life appoints chief risk officer
UK-headquartered life insurance provider Friends Life has appointed Rosie Harris as its chief risk officer and she is expected to join the company during April. She will report directly to Andy Briggs, CEO of Friends Life and be a member of the group executive committee Harris will be responsible for managing the broad strategic and operational risk management and governance framework for Friends Life group and maintaining a strong relationship with regulators.