UK Insurance: Nobody expects the Spanish inquisition…
Tuesday, 18 January, 2011 Leave a comment
I really never really thought of FSA or OFT as anything like the Spanish Inquisition, except insofar as the element of surprise is concerned…because, I reckon that most people would be very surprised if they brought about any kind of change to UK Financial Services, that benefitted the customer/policyholder – despite any good intentions!
Needless to say that, if my understanding of this investigation is correct, this is much more about protecting the interests of shareholders in relation to underwriting bank rights issues. BUT the point is that there is a lack of transparency (opacity) and that the rates have not reduced despite improved conditions.
My prediction…”hold on to your hats” because I have a feeling that this is the tip of the iceberg and the insurance industry can;t stand too much “heat”!!!
This is not and will not be the only such initiative. Opacity is the rotten core of all that is wrong with the UK (and global) Financial sector. Bailouts, fines and reprimands may have been tolerated but will not appease people beginning to feel the full effect of increasing economic uncertainty, rising cost of living, the likelihood of rising mortgage costs and falling services as a result of Public service cuts.