Prudential reattribution continues at snail’s pace

by Gill Montia

Story link: Prudential reattribution continues at snail’s pace

Prudential is being challenged by Aviva’s actions in coming to its partial settlement of the reattribution of Norwich Union with-profit funds.

There are around 4.5 million Prudential with-profits policyholders due for a share of the insurance company’s “orphan” funds which are reported to be in the region of £9 billion.

Plans to reattribute the funds were announced in March of last year and while a policyholder advocate has been named, no formal appointment has yet been made.

Peter Bloxham will have the job of representing policyholders’ interests in any distribution of the money and had planned to hold meetings with policyholders across the country by Christmas of last year.

An estimated 4,000 policyholders are losing out on the bonuses each week because their policies are maturing.

The Financial Services Authority is reported to be taking a keen interest in the reattribution process but has not intervened to speed up events.

Mr Bloxham has acknowledged that the longer the process takes, the more people will lose out, stating: “It is something I am acutely aware of and am discussing with the company. It’s not just about reattribution - this is more generally about treating customers fairly.”