STEPHEN CRANSTON: Life offices don’t have a cosy, backslapping relationship with the ombudsman
Report reveals that serial offender Hollard Life and Alexander Forbes have the most complaints from clients
The long-term (life) insurance ombudsman is no stranger to controversy. In the past decade the office was involved in a bitter turf war with pension funds adjudicator Vuyani Ngalwana. The public mostly took the side of the pension funds adjudicator as Ngalwana ordered life companies to pay back high charges on retirement annuities.
Since then the high upfront payments to brokers and agents for retirement annuities have been reduced and the clawback periods in which life offices can claim back commission from life salesmen have been extended.