Insurers are failing to adopt ABI 'quality marks'
The majority of life offices will not meet targets for the Association of British Insurers' (ABI) 'Raising Standards' scheme in the first round of applications, due in June.
The scheme, launched in October 2000, aims to improve industry standards by awarding quality marks for providers that comply with a new set of regulations. Applicants need to meet strict guidelines concerning products, customer service and clarity of information. But many companies are finding it tough to meet targets in time for the first accreditation, and are prioritising other industry changes before tackling the rules set by the ABI.
Standard Life is one of many providers that has decided not to push for accreditation. Andrew Black, marketing manager at Standard Life, said: 'We will not be ready to apply for the 'Raising Standards' scheme in June. We have made a decision to combine the changes needed to apply for the accreditation with other changes we are implementing in response to market changes. We are planning to implement these changes over this year and next year.'
Scottish Provident will also wait to apply. Robert Greenshields, marketing communication officer at Scottish Provident, said: 'We decided not to take part in the first wave of applications as the timetable coincides with our demutualisation with Abbey National.'
But Scottish Equitable said it considered the ABI's targets to be a high priority. Lesley McPherson, public affairs officer for parent company Aegon, said: 'Aegon is supportive of the scheme and believes it will be of great advantage to the industry.'
Norwich Union (NU), believed to be the only other key life office that will be applying in June, took a similar view. Ian Frater, press officer at NU, said: 'We are now aiming to be one of the first companies accredited with the quality mark.'
