The problem of pensions mis-selling is an instructive example of good crisis management by the insurance industry. The positive and pre-emptive approach adopted by regulators has done much to take the sting out of what is still a sensitive situation.
Heavy use by beneficiaries of the Financial Services Ombudsman means that very few cases between aggrieved policy holders and companies have been referred to litigation. The few cases that have arisen address how the payments to policy holders should be treated for the purposes of the professional indemnity or directors’ and officers’ insurance taken out by the pensions providers.
