Opinion  

Honest is as honest does

Paul Scott

In response to the article by Tony Hazell (FA, 4 December 2014), entitled: “Are there any more honest insurers out there?” I would say: “Probably the same number as honest journalists.” The Aviva compensations over errant annuity sales were small because, generally, the funds were small.

You cannot go back too far, because prior to that, there was no healthy enhanced market.

Clearly, there was a period of time when insurers had been directed to offer the open market option and cover health issues, and they failed to do so. The period is quite small, and other insurers should double check and follow Aviva’s lead. If there are issues, the insurance companies should act quickly to head off a claims management company feeding frenzy.

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For a period of time, online providers (beloved by journalists) also took commission without fully accessing health details.

The retail distribution review managed to create an environment in which advisers got paid commission as long as they did nothing and gave no advice. Bizarre epic fail.

Paul Scott
Senior Financial Adviser,
Scott Financial,
Hartley Wintney,
Hampshire