Insurance sales back for British banks
23rd December, 2014
UK bank branches have slowly started selling insurance again for the first time since the £21billion consumer mis-selling scandal. Chief Executive of insurer Aviva PLC, Mark Wilson, states that the company's sales of general and life insurance policies have risen across the months since the start of 2014 owing partly to the banks having turned on their protection sales once again.
British banks are still having to put aside money to pay fines and compensation to investors who were mis-sold their insurance though, and this week has seen Lloyds bank become the most recent to make a £900 million provision.
Four years on from the scandal erupting, however, Mr Wilson has explained that insurance sales staff have been allowed back into the branches. Talking about the importance of protection sales and their re-appearance in the UK, Mr Wilson said this: "We are seeing them come back into the market but in an incredibly disciplined way."
Banks were previously fined for selling insurance policies or offering loans to consumers who didn't need them or who didn't understand what they were buying. Despite UK insurance sales making a comeback, Mr Wilson explained that banks will be avoiding the type of cover which was associated with the scandal, instead opting for the 'vanilla, run-of-the-mill' protection, and that regardless of the sharp decline in annuity sales sparked by the pensions shake-up earlier this year, Aviva will still be offering a ''full range of products''.
Consumers are urged to do their research and compare loans and life insurance quotes prior to investing.