Norwich Union: Endowment mortgage industry needs regulation

22 November 2004 / by None
Norwich Union wants to see third-party endowment complaint firms regulated in order to protect customers.

The insurer says these companies target people living on estates constructed in the 1980s and 1990s, when endowment mortgages were popular and many people were buying their council houses.

Norwich Union says it is receives 18 per cent of its complaints through third-party complaint firms, increased from 4 per cent at the start of the year.

"Customers may also not realise that up to a quarter of their compensation, and in some cases up to a half, can be swallowed up in fees or charges if they go down the third-party claim route," noted Mike Urmston, chief actuary at Norwich Union.

Norwich Union is calling for these complaints companies to be regulated by the Financial Services Authority to prevent exploitation.

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