IAG handed over 50,000 life insurance clients with State insurance to Aon. State said in a letter sent to customers that they were focused on the general insurance and are no longer selling life insurance. Click here to read more.
Handing them over to an advice business means that they can be relieved of ongoing servicing obligations. This is a good example of a market exit which acknowledges the needs of customers in the medium term. It also shows ways in which conduct obligations - and possibly the current conduct discussions - can provide a positive wind-shift in favour of advice-giving businesses. In the past, corporate conversations have often been framed in the context of the risk of advice-giving.