2 Million Endowment holders still face shortfall

The FSA has reported that more than 2m people in the UK with endowment policies are still facing a shortfall.

In a recent report the FSA announced that 82 per cent of those households have a projected shortfall of 72,000. Despite this the regulators still has no plans to hold an inquiry.

The industry regulator has also fined nine companies for endowment related failing.

Anna Bradley director of retail themes for the FSA is stated that "There has been a sustained effort by the industry to improve complaints handling and we will now be focusing our efforts on those firms that have not yet established appropriate standards.

"We expect firms to act now to make sure they have adequate contingency plans in place any increase in the volume of complaints. Those firms not maintaining acceptable standards of handling will be required to rectify the situation."

Jul 22, 2005
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Lloyds TSB plc has allocated a further £110 million to compensate endowment policyholders. This is in addition to the £250 million which was set aside to pay compensation in 2003.

Lloyds TSB plc to impose a time bar on endowment policyholders that were mis-sold their policies in order to prevent them from making a claim

Reported in the Daily Telegraph December 2004

Mortgage endowment policyholders are collectively going to face a shortfall estimated at £ 40 billion

The average amount of compensation where a policy has been mis-sold is estimated to be £3,000
Source ABI (The Association of British Insurers) 2006