Small business tennessee health insurance news and information.

The Financial Services Authority (FSA) said insufficient advice and “variable quality” after-sales service was being given to with-profit policyholders.

In particular, the FSA was worried that after-sales literature was and missed out key information.

The FSA warned insurers and financial advisers to up their game or face action.

Poor after-sales information for these and other policy types makes it harder for consumers to understand the performance of their policies Sarah Wilson, FSA

With-profits are one of the most widely held of investment types.

There are some 32 million policies currently in force.

With-profit funds invest in the stock market but smooth out investment returns by holding back money made in good years to pay out in bad ones.

Literature letdown

Crucially, the FSA found that many policyholders no longer had access to the adviser who sold them the policy in the first place.

As a result, they have to rely on post-sales literature from the insurer.

Often this literature is not up to scratch, the FSA said.

“Poor after-sales information for these and other policy types makes it harder for consumers to understand the performance of their policies and the product features they have paid for,” Sarah Wilson, director and insurance sector leader at the FSA, said.

“Senior management in both insurers and advisory firms need to re-examine their existing approach and, where necessary, implement changes,” she added.