Major insurers are being put under
the spotlight after a regulator found that customers may have been
unaware of life insurance exit fees.
The Financial Conduct Authority (FCA) said it had found examples of poor practice in the treatment of customers with so-called zombie policies.
These are held by long-standing clients and are closed to new customers.
The FCA is worried about how exit fees and charges were explained to customers.
These included "paid-up fees", where customers stop paying premiums but are still in the policy.
The
fresh investigation will focus on the explanation of charges after
December 2008 at six firms - Abbey Life, Countrywide, Old Mutual, Police
Mutual, Prudential and Scottish Widows.
