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Daily Insurance Industry News
Wednesday 22nd of May 2019
December 11, 2007

Equitable Life Probe Set Back Further

by Stewart Douglas

Story link: Equitable Life Probe Set Back Further

Yet another delay to the release of the study into the crisis that brought insurer Equitable Life to its knees has today been criticised by campaigners after it was initially due to be published back in 2005, sparking fears that it could pave the way for further problems in the industry in the interim.

The report by Parliamentary Ombudsman Ann Abraham was initially due to be released in 2003, but is now not to be released until April next year, in yet a further set back to the report in to the Equitable Life crisis of seven years ago which left many policyholders without cover.

But the decision to postpone the release of the report has fallen to criticism from Equitable Life campaigners, who have suggested that the government should own up to their part in the near collapse and refund aggreived policy holders what was lost in the incident.

The report is expected to suggest that the government was partially to blame for the incident as a result of the lack of regulation in the area that allowed Equitable Life to run into its financial predicament which ultimately lead to problems for policyholders. It is thought that the release could push the government closer towards establishing a compensation programme for those affected by the incident.

However Paul Braithwaite of Equitable Members Action Group blames the treasury for the constant delays to the release of the report, suggesting they are readily aware of the potential implications of its findings and the likely cost in repaying the victims of the collapse.

With the report likely to focus on the government’s role in the incident, it is thought that the findings may prompt victims to push for compensation from the Treasury, with the potential to run into millions in damages.

 

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