Scotland 'can forge life insurance sector change'

Published on Monday 20 August 2007 13:07

THE life insurance sector in Scotland is in a unique position to help forge changes in the industry that would give customers a better deal, a key industry figure has claimed.

Otto Thoresen, chief executive of Aegon Scottish Equitable, said there is "a will" among industry leaders to see a better model of the industry emerge.

Mr Thoresen - who is leading a Treasury review of how to set up a national money guidance service, as well as chairing a working party in the Financial Services Authority (FSA) retail distribution review - said enough senior industry figures are determined to find good solutions to make change possible.

His comments come after a scathing attack on the industry's "sales-driven" business model by FSA chairman Sir Callum McCarthy last autumn.

In a speech at Gleneagles, he said most advisers were dependent on commission payments from insurers and banks and too many of them were underqualified.

Trevor Matthews, the UK chief executive of Standard Life, has been appointed president-elect of the Chartered Institute of Insurance, while Archie Kane, chief executive of Scottish Widows, will now chair a key committee of the Association of British Insurers.

Mr Thoresen believes the appointments will help drive change.

In a media report today, he said: "Scotland finds itself very highly involved and committed to become engaged in helping to move these changes forward."