Serious concerns have been raised about the way Legal & General is dragging its feet in transferring...
Serious concerns have been raised about the way Legal & General is dragging its feet in transferring old private medical insurance (PMI) policies to Axa PPP healthcare, writes Peter Carvill.
Intermediaries are reporting that the timeline is being dragged out by poor administration on the part of Legal & General.
Paul Walker, managing director at Essential Health, said: "It appears that Axa PPP doesn't get the full underwriting for the case until clients actually renew. It's a strange way of doing it."
Legal & General pulled out of the PMI market in July 2007, and policies signed before or on 28 February 2007 were transferred to Axa PPP. Notice of this move was given in letters sent directly to customers, a move that angered many in the protection market.
Susie Colley, managing director at West Country Health Care, was livid about the switch, expressing particular concern that the Financial Services Authority (FSA) chose to remain uninvolved.
She said: "I did think Legal & General was a reputable company. They're a bunch of idiots. I think they are immoral. If they didn't want to continue, they should have told intermediaries first. It's unprofessional, immoral and it stinks. I don't know why the FSA didn't take this up. It strikes me that they don't have any teeth. Is this treating customers fairly?"
There was industry-wide disappointment about the demise of the Legal & General product. Penny O'Nions, principal of The Onion Group, said: "I think it's a great pity because it takes away competition and the Legal & General product was very attractive. The version Axa PPP will be offering isn't attractive because of the hospital list and its insistence on the doctor contract."
In response, Ben Faulkner, press officer for Axa PPP, said: "We have been offering Legal & General customers membership since July 2007. We will be addressing these concerns and are confident we will satisfactorily resolve the situation."
