Policy resale allegations

Some UK life insurance companies are accused of conducting a passive resistance campaign against a recent directive from the FSA to advise policyholders that they have an alternative to surrendering their underperforming endowment policies and to facilitate the resale of such policies

Afund management group which invests in traded life policies (TEPs) has accused certain life insurance companies in the UK of obstructing the secondary trade in endowment policies. The group, Managing Partners Ltd, claims that life insurance companies deliberately slow down the processing of applications to transfer ownership of policies.