Your IndustryAug 22 2014

More should leave the ABI, campaigner says

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Legal and General has become “an example that others should follow” in leaving the Association of British Insurers, campaigner Gina Miller has said.

Speaking about Legal and General’s departure earlier this month, which group chief executive Nigel Wilson partly attributed to the ABI’s transfer of investment business to the Investment Management Association earlier this year, the founder of the True and Fair campaign said: “It’s a very interesting move. It’s a bold one and one that should be commended.

“What it will do is make a real mark in the sand to the associations that members won’t put up with it.”

She claimed that associations such as the ABI lacked effectiveness, saying: “If you look at the British Medical Association it’s great at understanding and promoting its members.

“If you look at the measures of public trust for our sector among the public, they haven’t moved. Part of the problem is sitting in the associations. They should be bringing in more transparency measures.”

In a letter to ABI director general Otto Thoresen, Mr Wilson said: “Following the recent change in the constitution and mandate of the ABI as a result of the transfer of investment business to the IMA, we have given considerable thought to the question of our continuing membership.

“This is a reflection of the fact that a large proportion of our business lines will fall outside of the remit of the ABI given that the business of Legal and General has significantly evolved and in 2014 our business is now as much investment management as insurance.

“There is also a recognition that even within the insurance sector the ABI often concentrates, for understandable reasons, on the general insurance sector where as you are aware we have only limited business lines.”

In statement, Mr 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 more than 90 per cent of the insurance sector.”