Legal and General has informed the Association of British Insurers that it will cease to be a member of the organisation at the end of 2014.
An official statement from the insurance giant read that as its business has evolved over time, now a large proportion of its business lines fall outside the remit of the ABI.
“In the future we believe engagement with government, regulators and other external bodies will be more individually tailored, and less suited to uniform representation through one trade body.
“We believe the ABI plays an important role in public policy formulation for the sector, and in promoting best practice and codes of conduct across the sector. Going forward we would like to work with the ABI on these important issues.”
Earlier this year the ABI announced that it will merge its investment arm with the Investment Management Association to form a new trade body that will more broadly represent the interests and provide greater oversight of fund managers.
The ABI’s director general Otto Thoresen said: “As a trade association, of course we are disappointed by the resignation of a member, however the ABI’s continuing strong membership represents over 90% of the insurance sector.
“The board of the ABI believes the industry is at its most effective when working together to respond to legislative and regulatory change.
“Working with our members we will continue to drive the reform agenda forward to make markets work better for customers on policy areas as diverse as pensions, use of data, welfare policy, tax and regulation to ensure the UK insurance sector continues to contribute positively to the economy and society.”
L&G’s move is likely to mean that chief executive Nigel Wilson will step down from the association’s board.
