Barclays simplified high street life insurance product
20th August, 2014
Barclays has launched a straightforward life insurance product this month, a year after the government demanded that gimmicks and tricks be scrapped and simplified banking products be introduced. The BSI approved option is the first of its kind but it has been predicted that other suppliers will soon be launching their own competitive policies.
The Sergeant Review called for the development of a simple range of life cover and savings accounts and hopes that the move will send a reassuring message to customers. "All high street financial product providers should offer their customers a range of simple products," Carol Sergeant said of the move. The BSI kitemark is awarded to those companies that strive to offer financial services that are both easy to understand and easy to buy, including those available to purchase on comparison websites where consumers can compare life insurance quotes.
Ms Sergeant pointed out in the review that many people are without any form of financial protection and often resort to borrowing off payday lenders thereby getting deeper into debt. She went on to say that many people were simply bewildered by the sheer range and choice of offers.
The consumer group, Which? has echoed these concerns and published research detailing a range of problems with the products already out there including the confusingly named 'zombie accounts' and rollover and auto-renewal practices. Which? has called upon the Financial Conduct Authority to use their competitive powers to scrap some of these existing practices and to revolutionise the savings market.