Articles and Reports

Some policyholders have asked us where they can learn more about the with-profits life insurance industry and reattribution.

This note gives some references and sources of information; it is not a comprehensive list. Please note that this office cannot provide the material to policyholders.

1. Our website contains a downloadable interview with Nick Dumbreck explaining the work of the Independent Expert. Click here if you want to read or listen to the interview, alternatively call our helpline and we will send you a copy.
2. The FSA website gives full details of the with-profits review. This comprehensive review took place after the AXA reattribution in 2000. The full reference is given below. The Conduct of Business rules may be found through the second reference. http://www.fsa.gov.uk/Pages/Library/Other_publications/Profits/index.shtml http://fsahandbook.info/FSA/html/handbook/COB/6/12
3. The judgement in the AXA case can be found here: High Court Judgements – AXA
4. A Practitioner’s Guide to FSA Regulation of Insurance, City and Financial Publishing, second edition 2004, ISBN 1 898830 86 X
5. Smaller, S.L., Drury, P., George, C.M., O’Shea, J.W., Paul, D.R.L., Pountney, C.V., Rathbone, J.C.A., Simmons, P.R. & Webb, J.H. (1996), “Ownership of the Inherited estate”, British Actuarial Journal 2, 1273-1298. This considers alternative views on ownership of the inherited estate
6.Sibbett, T. (1996) “Life office bonuses; the road to 90-10”, The Actuary, January/February, 28-29. This sets out how shareholders’ and policyholders’ participation rights were different in the 19th century.
7 Sandler, R. (2002), Medium and Long-Term Saving: A Review, HM Treasury chs 6, 10 http://www.hm-treasury.gov.uk/Documents/Financial_Services/Savings/fin_sav_sand.cfm This was a Treasury-commissioned review. Chapter 6 deals with with-profits business; chapter 10 gives the (overall) conclusions
8 Shelley, M., Arnold, M. and Needleman, P.D. (2002), “A review of policyholders’ reasonable expectations”, British Actuarial Journal, 8(4) 705-755. This paper examines several issues on what with-profits policyholders may reasonably expect from their policies, including reference to the inherited estate
9 O’Brien, C. (2004), “Constraints on discretion: distributing surplus in with-profits life insurance, Journal of Financial Regulation and Compliance, 12, 118-127 This paper summarises court cases where with-profits policyholders have complained that the allocation of surplus was unfair (but does not refer to the inherited estate specifically)

Note:
The Actuary is published by the Staple Inn Actuarial Society, www.sias.org.uk
The British Actuarial Journal is published by the Actuarial Profession, www.actuaries.org.uk
Journal of Financial Regulation and Compliance is now published by Emerald, www.emeraldinsight.com

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