Is your life insurance policy affected by the planned Axa takeover?

Tuesday, July 6, 2010

Current plans for Resolution Life to take over Axa’s life insurance business will result in a number of consumers seeing their life policies being switched to a new owner. The planned takeover is thought to affect over six million life insurance customers, who currently hold policies with Provident Life, Winterthur, Sunk Life, Provident Life and Equity & Law.

Axa has acquired the brands over the past few years, even if the policies remain under the names of the previous suppliers. Industry experts are recommending that people who may be unaware of the fact that Axa has taken over the provision of cover take the opportunity to identify whether they are still obtaining the best possible life insurance deal as the planned takeover gets underway.

Although Resolution have issued a statement saying that they do not intend to close funds for new customers, insurance experts still warn that a takeover may result in changes to policies. Resolution have stated that they intend to merge the business with Friends Provident, with whom they currently have an ongoing partnership.

Previously, Resolution operated as a consolidator, purchasing insurance funds and closing them to new customers. This meant that many policyholders were locked in to policies through early surrender charges, and new customers were no longer required.

Experts suggest that Resolution is seeking to purchase as many life funds as possible, with a view to reducing administration costs and selling on the company at a later date. Insurance industry analysts are warning UK life insurance policyholders to check their documentation carefully and take this opportunity to review their policies, in the light of the anticipated changes which the Axa/Resolution takeover may lead to.

Many policyholders may be unaware that Axa is the behind-the-scenes provider for their policy, as a number of brands continue to operate under their previous company name, even after the life insurance policy has been switched over.