Wise Owl stops providing Life Insurance

Thursday, August 12, 2010

The Financial Services Authority (FSA) have ordered Wise Owl Services (who also trade as Wise Owl Insurance Services and Wise Owl Mortgage Services) that they must desist from undertaking insurance and mortgage activities in the UK.

Previously, the FSA had pulled the company up on their sales practice procedures, and has now issued an outright ban on the firm preventing it from trading regulated mortgage and insurance activities. The Birmingham-based company could now find itself having to answer questions from a number of policyholders.

Wise Owl Services have been found guilty of non-payment of Life Insurance premiums on behalf of their customers. They offered a year’s free Life Insurance cover to customers, but it transpires that the company stopped paying the premiums, leaving a number of customers uninsured.

Customers of Wise Owl Services have been advised to check whether or not their insurance policies are affected by the misdemeanor, particularly if they are among the number who signed up for free Life Insurance as part of Wise Owl’s promotional package. The FSA have suggested that all customers who suspect they may be affected by the new ruling should contact their insurer to check the status of their policy. In addition, those customers who are paying Wise Owl Services for insurance products have been advised to check with the company to ensure that their premiums are being paid correctly, and that they are still covered as expected.

The Wise Owl Insurance Services site has been taken down, meaning that a number of customers may find it difficult to contact the firm to establish the status of their insurance policy with the company.