What are the life insurance companies doing?

  • glen07
  • 21/10/08 n/a (free)
  • a depositor
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Posted: Fri, 28/11/2008 - 23:02

I am a personal investor with KSF (IOM) but wondered what the life insurance companies are doing about retreiving the money back for their investors. Surely such big financial institutions can afford expensive leagl representation to challenge whatever authorities they demand answers from. Are these companies co-operating together to offer some real "muscle" against the Treasury? Is there any liason with these companies to see if a united legal challenge can be brought forward to win our money back?

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They seem to be doing very

  • chipmunk
  • 13/10/08 31/05/09
  • unspecified
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  • Sat, 29/11/2008 - 10:40

They seem to be doing very little.....I invested through Hansard Europe and all they are doing is 'Attending the Court'.....

Hopeless really


Maybe behind the scenes?

  • investor01
  • 13/10/08 n/a (free)
  • a depositor
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  • Sat, 29/11/2008 - 10:54

glen07,

That's a very fair question and one I've asked myself and my (former) IFA on a number of occasions. On the evidence supplied to me, I'd say 'very little'. I usually get sporadic comments along the lines of 'we are making every effort to protect our investors'.

However, the realist in me can't help but think that wherever the finger of blame points at the end of all this, ALL life companies risk coming out tainted and they simply cannot afford that. I know from working in a large bank for many years that reputation is all and they would be fools to just sit back and wait. Another thing I am aware of from working for a large bank is that you do not announce anything until you're sure it is going to happen. If you even hint at something, people (understandably) latch on to it and then when you are unable to deliver, the fallout is worse than if you had done nothing.

My feeling in summary is that the life companies should be better at commmunicating regularly, even if that communication is to let their customers know that they are still there, still fighting and say what they are fighting for.


I think you are right.

  • dclf1947
  • 10/10/08 31/08/09
  • a depositor
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  • Sat, 29/11/2008 - 11:32

Your comment about not announcing anything until it is sure to happen is very true in the financial and political environments. I too am sure that in the background and behind closed doors there are many discussions with various parties relative to the KSF (IOM) problem. Hopefully one day in the near future we may hear of a large chunk being sold off or perhaps the whole set-up. These type of people are very secretive to protect their identities and and the "deal" from competitors. Although the IOM government have called in experts to look at the problem over the next 60 days I am sure that the government too are hoping for a quicker fix before then? Unfortunately we (and possibly the IOM government) won't know anything until it happens except perhaps words like "discussions are taking place" etc. which only add to our frustration.


Insurance companies are ver afraid

  • humphrey
  • 10/10/08 01/03/11
  • a depositor
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  • Sat, 29/11/2008 - 18:13

They may be keeping things at arms length in public but behind closed doors they are shi**ing themselves, the lack of protection in offshore islands for their products will seriously hurt them. They want this mess cleared up as badly as we do IMHO. The fact that Insurance companies and IFA's are trying to lay the blame at each others doors tells you one thing: they know miss selling has occured, which is great for us bondholders!


Insurance companies are very afraid

  • rousey
  • 21/10/08 31/05/09
  • unspecified
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  • Mon, 01/12/2008 - 12:40

I agree with all that has been said.
I too have invested in fixed deposits via an offshore life co. (in my case Skandia) and i have met with alondon regional development manager last month.
Although they keep spouting on about how my IFA should have informed me about the lack of protection, he was certainly worried about the futur prospects for these types of products.
I am in the middle of an official complaint procedure with them about this.
All life companies are very worried and i have read in the press that some are taking legal advice regarding duty of care misuse and whether monies should be repaid.
All investors on this site with offshore bonds should be making as much noise as possible about the lack of protection that the bond afforded deposits into IOM banks .
This will focus their attention and even if seems futile at the moment , the biiger picture is that they will never regain investors trust if this is the type of underhand actions they hide behind.
We should also be prepared to look at class actions against the offshore companies because many of us heva never been informed that our monies were pooled togethee and our combined deposits were protected by a corporate bond of £20,000. Absoulut disgrace and i am sure lawyers could have a field day with these people


Insurance companies discussion

  • piratepete
  • 16/10/08 31/05/09
  • a depositor
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  • Mon, 01/12/2008 - 07:48

My opinion is that the bond companies won't be able to sell anymore of their products through the IOM due to bad publicity if the bank is wound up. The same is true (even more so) for all the banks on the IOM too. I reckon that the UK gov is being pestered by the bond companies as we speak and that can only help us all. I think the recent news of 15 parties looking through our bank's books is positive and I believe that the IOM gov wouldn't waste all that money in employing Allix if they thought they were flogging a dead horse. It would be far too expensive. Lets just hope that there is some positive news from London KSF today about the 550 mill. However the IOM gov's comments don't inspire confidence in that regard. Perhaps our 550 mill is being used as a bargaining chip ? Who knows. Lets just get behind everyone who's doing such a great job fro us with this web site and working on our behalfs in London & the IOM.


Insurance companies

  • darrmont
  • 15/10/08 31/05/09
  • not a depositor
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  • Mon, 01/12/2008 - 12:16

Like many other parties to this debacle they are not giving away much information, except to say that they are working with various parties including governments etc to find an optimal outcome. I believe they are doing what they can and are keenly aware of what major problems with bondholders will do to their future business flow.

They understand what happened to the demand for endowment policies when their misleading calculations were used to sell policies at unrealistic premium levels, and also what happened to the demand for investment trusts after the split capital trusts problems in the early part of this decade.

I believe they are pedalling hard to get a solution and may well end up having to use some of their assets as part of a solution, clearly much of the IOM assets depend on the UK liquidation and the proceeds from that but I believe a number of companies will be working very hard at a high level to get a solution.