Banks, investment firms and insurance companies have all been slapped on the wrists again as The Financial Ombudsman Service releases its third set of six-monthly complaints data.

And banks, like many companies across the financial sector, do not come out of the findings that well.

The report from The Financial Ombudsman Service covers complaints that were received for the first half of the year. The total number of new complaints in this period were 84,212. And nearly 90% of these related to 160 businesses which were financial in nature. The Ombudsman actually covers 100,000 businesses.

To compare with what happened in the second half of 2009, then there were 82,136 received then, so a slight increase in 2010.

What’s worrying, is that five individual groups had more than 3,000 complaints each. Taking as a total, this amounted to over half of all the new complaints.

As to the number of complaints upheld (those found in favour of the person complaining), then 44% were seen to have validity. This compares with 53% in the second half of 2009, which suggests that the complaints although up in number, are not for some reason being upheld so frequently.

A contributing factor may have been that some 15,000 complaints about unauthorised overdraft charges were filed and then closed. This was the only course of action left open to The Financial Ombudsman Service, after the Supreme Court dashed everyone‘s hopes by ruling last year that the Office of Fair Trading’s test case could not be used to challenge the fairness of unauthorised overdraft charges.

The chief ombudsman, Natalie Ceeney, said:
“The latest set of complaints data shows that some businesses are really committed to ensuring that complaints are handled well, and are used to inform and improve the service they offer their customers.

“However, the complaints data also shows there is still more that some businesses need to do to ensure that complaints are properly investigated and fairly resolved. The ombudsman is keen to continue to play its part and help businesses draw lessons from the complaints that we see, so disputes can be sorted out at the earliest opportunity.”

As for which banks got the worst marks, way out in front is the UK’s largest bank, Lloyds TSB. Of the 12,750 complaints about in the first half of 2010, some 45% were upheld. And although Barclays was second with 7,991 complaints, a whopping 61% of those were upheld. Third on the name and shame scale was Halifax/Bank of Scotland, with 6,211 complaints, although only 23% were upheld. Ironically, with Halifax/Bank of Scotland being part of Lloyds TSB, put those figures together, and the group wasn’t very popular at all.

Santander customers like to complain, but with only 19% of 4,881 complaints upheld, the Spanish banking group, coming in at number four, might have averted a PR embarrassment.

Fifth on the list is the bank that likes to listen to its worldwide customers, but obviously not enough, because 3,286 customers didn’t like what they were being told, although only 34% of the complaints were upheld.

Bringing up the rear of the top six worst offenders – no doubt due to those nauseating television adverts about their friendly bank staff – was NatWest with an not too unrespectable 2,810 complaints and 43% of those were found to be valid.

So complaints up, but numbers of those upheld down, so maybe there’s hope for the remainder of the year.

Guest Article by Neil Camp

RSA, the world’s leading insurance company which currently has an audacious £5 billion cash bid out for part of the Aviva Group, has launched a new car insurance product.

The package is called RSA echoice Car Insurance and it has been launched for online users only. RSA are promoting it as a new pick and mix product which will allow online users to get flexibility and control with their policy, tailoring their agreement to meet their exact needs.

RSA customers will have the ability to build their own policy, starting from a basic level and then picking combinations from around ten cover options which might include vehicle breakdown, legal assistance, emergency assistance and legal care. What’s more, that options can be added throughout the life of the policy.

Head of car insurance at RSA, Keith Maxwell, said:
“RSA echoice is all about empowering the customer to take complete control of their insurance. Our customers want to be able to pick and mix their covers, rather than buying an ‘off-the-shelf’ package as traditionally provided by insurers. RSA echoice not only enables them to do this but also helps ensure that customers will only ever pay for the cover they want and need.”

The concept behind the RSA car insurance scheme echoice is to give power to the consumer. They will be able to self-administer their own policy, without having to telephone call centres to organise the various options. And a consumer can make the changes they require on a 24-hour basis, via their own computer.

The ability of the consumer to self-administer their policy, means that central costs to RSA can be kept down and therefore people’s premiums can also be kept low.

The new car insurance scheme will be available at the RSA website, as well as leading comparison websites.

Guest Article by Neil Camp

Aviva’s cheap life insurance business is not so attractive to RSA.

RSA is on the hunt for Aviva’s non life insurance business, but it’s no deal as the Board of the Norwich Union (as it was formerly known) say think again.

The RSA bid for Aviva’s non life insurance business is worth around £5 billion cash, but directors of Aviva have given the offer the cold shoulder, saying that the business is worth far more. RSA is not after the cheap life insurance business.

RSA is after Aviva’s general insurance business which has operations in Canada, Ireland and the UK. But the bid does not include the breakdown motoring organisation the RAC, or Health.

The small print of the RSA deal included a provision which meant that Aviva would have been left with the pension liabilities of not only the Health business, but also the general insurance businesses of the operations in France, Italy, Netherlands, Poland, Singapore and Turkey.

The offer from RSA did little to impress Aviva, although the City of London is now awash with thoughts that it’s about time the super insurance group was broken up to maximise shareholder value.

Aviva doesn’t agree and was vociferous in its defence, pointing that the highest shareholder value would be kept by keeping the businesses targeted by RSA within the same group.

The Aviva Board backed up their view with a number of assertions as to the strength of the current business.

Not least that a recent review had revealed that having both Life and Non-Life businesses is the best way to deliver significant capital and earnings benefits. Also, that there are further cost saving synergies to be realised over the short to medium term.

But, as always, it comes down to filthy lucre and RSA, as always with such bids, is bidding low to entice investors and will only reveal its true bid as matters develop.

Aviva is basically saying that RSA is not digging deep enough into its pocket for a business that not only has a dominate market position, but one that also has superb future potential.

To this end, Aviva is reminding RSA, and the City at large, that it is not only the leading general insurance business in the UK and Ireland, but it is the number two player in Canada. Given that, it should be valued accordingly.

What’s more, Aviva contends that the insurance sector is at its lowest point for years and RSA is making a bid at the bottom of the cycle which does not reflect the businesses true earnings potential. They cite the example that in 2006 operating profits of £1.7 billion were lodged in 2006, whereas it had fallen back to £1 billion last year.

Aviva believe that to sell its general businesses now for £5 billion, would be a travesty.

The howls of protest were led by Lord Sharman, the Chairman of Aviva, who said:
“The Aviva Board considered RSA’s proposal carefully with a clear focus on maximising value for Aviva shareholders. Given the compelling strategic and financial benefits to Aviva shareholders of retaining the GI business, its upside potential and the terms offered by RSA, the Board was unanimous in rejecting this proposal.”

Andrew Moss, the Aviva chief executive, weighed in with:
“The progress we’re making in reshaping and transforming Aviva was evident in the 21% increase to £1.27 billion of operating profits at our interim results and we firmly believe this strategy will continue to deliver superior value for our shareholders.”

But whether the RSA gets their hands on the Aviva non life insurance business, leaving it with the cheap life insurance business, will not rest with the directors of the target company. It’s the big fund managers who control large chunks of Aviva stock that will ultimately decide who gets the prize. But RSA will have to pump up their bid a way before any sale might be agreed.

Guest Article by Neil Camp

A well known car insurance company has said that men are more likely to have a crash in the summer than woman.

Sheilas’ Wheels, which offers car insurance for woman, says that of the men they questioned, nearly one third said that they could not keep their eyes on the road if they spotted women wearing revealing summer clothes.

The research, which surveyed 1,300 men and women, revealed that in the months of June, July and August, men made nearly 20% more claims than women.

But it wasn’t just scantily clad women that worried the nation’s male drivers. They also get worked UP about the heat. One in five of the men questioned said that they became more aggressive as it got hotter.

A quarter of the men admitted that they had suffered at least one crash in the summer months in the last five years, whereas only 17% of the women questioned said they has suffered a similar summertime accident.

Sheilas’ Wheels spokeswoman Jacky Brown said:
“In the age of air conditioning, you might expect all drivers to be equally chilled out in summer, but men are significantly more likely than women to claim. We urge all motorists to keep their eyes on the road regardless of distractions.”

Well said and Donna Dawson, a behavioural psychologist, added:
“Research shows men are far more easily distracted behind the wheel than women. Distractions such as billboards or an attractive woman walking down the street can quickly take their attention away from driving. Testosterone also plays a part as it makes men more prone to aggression, especially when frustrated by a confined space such as a car – and men are quicker than women to expose such irritability in hot weather.”

The research points out that not a lot has changed since 1994 when the famous ‘Hello Boys’ posters featuring supermodel Eva Herzigova caused a number of distracted drivers to have crashes.

Guest Article by Neil Camp

The Engage Mutual Insurance company has released a report that says men whine more than woman when it comes to aches and pains.

This may be no surprise to most women in the UK, but it appears to have shocked this mutual insurance company into publishing the results of their new research.

One of the staggering conclusions reached by the mutual insurance company conducting the research is that although women like to complain about minor problems on a daily basis, men actually feel more sorry for themselves when they become ill. Ground shattering results.

The mutual insurance company questioned around 3,000 poor souls and discovered that over 50% of all the men exaggerate the symptoms of their illness. They may get ill less than women (five times compared to females seven times), but once they are ill, they tend to become music hall actors and ham the whole experience up. Thus flu becomes a cold, a headache become a migraine and a stomach ache becomes death (only joking on the last point).

What’s more, the mutual insurance company says that nearly 60% of men seek attention when ill, whilst a whopping 65% constantly groan and moan. But even though the histrionics are loud, most men (some 76%), prefer to go to work and moan at their colleagues, rather than seek a cure at home.

A spokesman at the Engage Mutual Insurance company said:
“Men have had a bad press concerning their tendencies towards ‘man flu’, but our findings support the belief that men do moan more and are more likely to exaggerate their symptoms. They may have fewer bouts of genuine sickness a year, five compared to the seven suffered by women, but when ill, their attention seeking behaviour makes sure their partner knows about it.

“But even though men look for maximum sympathy, they tend to struggle on, being less likely to take time off work for an illness. Minor ailments aside, it is important for men to recognise and act on any genuine health concerns. Whether taking professional advice, or seeking suitable remedies and treatments to aid recovery, it is important to address any issues in order to maintain good levels of health.

“Women score higher than men on being prepared to dole out the sympathy for an attention seeking partner, regardless of whether they believe they are genuinely ill, or not. But when it comes to doing the little things that make a partner more comfortable when they are ill, men and women seem to be more evenly matched.”

So there you are then. It’s official, according to this mutual insurance company, men are the biggest moaners. And just wait until they get their new insurance premiums, then you’ll hear them really scream.

Guest Article by Neil Camp

Gongs handed out by the 2010 Moneywise Customer Service Awards included two for M&S Money which was named not only the ‘most trusted motor insurance provider’, but also the ‘best travel insurance provider for service.’

The awards for most trusted motor insurance provider and the best travel insurance provider for service were handed out in front of nearly 300 guests at a gala dinner held in the City of London.

And the awards for most trusted motor insurance provider and the best travel insurance provider for service come from, claim the organisers, the biggest customer service survey of its type held in the UK. The figures were compiled by the Moneywise magazine and their website, Moneywise.co.uk following around 10,000 responses. These were then given to CoreData research for analysis who were used to identify those companies which, according the UK public, offer not only the best service, but also those who are the most trusted.

Apart from the main awards, M&S also walked off with two highly commended, one in the ‘most trusted travel insurance provider’ and the other, ‘best motor insurance provider for service’ categories.

On opening the gold envelopes and barely holding back the tears, a triumphant M&S Money Chief Executive said about the awards, including most trusted motor insurance provider:
“All our insurance policies are designed with the M&S customer in mind, and we are delighted that M&S Car and Travel Insurance have been recognised at the Moneywise awards.”

It also gave M&S a chance to remind people about their polices, including their role as most trusted motor insurance provider. They pointed out that their M&S Premier Car Insurance protects not just their car, but the policy holder. What’s more, it also includes RAC breakdown cover, a hire car for up to 14 days and motor legal protection.

So, when it comes to looking for the most trusted motor insurance provider, and indeed, the best travel insurance provider for service, then have a look at M&S. It’s not only good underwear they sell, but also good insurance apparently.

Guest Article by Neil Camp

The modern phenomenon of drive-texting is on the increase says a leading insurance company.

Drive-texting is when a driver at the wheel of their moving vehicle uses their mobile phone to send texts; a practice regarded by safety experts as very dangerous and one that is strictly prohibited by law, and one also causing insurance companies some concern.

And in a recent survey conducted by one of the world’s largest insurance companies, the Prudential discovered that drive-texting is on the increase. What’s more, drivers who break the law in such a way, are 23 times as likely to be involved in an accident than those that don’t indulge in drive-texting.

But what worries the experts most of all, is that when it comes to drive-texting, it doesn’t really matter if the person involved in the accident was using a handheld phone, or one with a hands-free kit. The survey statistics didn’t really see a distinction, meaning that hands-free kits are not the answer everyone thinks they are.

The guilty party behind the drive-texting accidents is incidents of divided attention and mental distractions. Which puts the blame squarely on the shoulders of the act of operating a phone which causes the distractions; it’s not a question of by what means the phone is used.

The drive-texting report, conducted by Prudential Insurance, says:
“When sending a text message, motorists travelling at 55mph could cover the length of an entire football pitch in the space of a few seconds. Combined with not looking at the road while texting, this is a lot more dangerous than making a phone call while behind the wheel.”

The Prudential Insurance is quick to remind people that those that get caught drive-texting will be liable, as a minimum, to a £60 fine and three points on their licence. Should the case be serious enough to go before a court, then this could rise to a fine £2,000 and a ban from driving.

When he was road safety minister under the previous Labour government, Paul Clark said of drive-texting:
“Tough penalties and hard-hitting campaigns have got the message through to the majority of drivers. But some are still needlessly risking their own lives and putting others in danger for the sake of a text or a call. Our message is simple: don’t use your mobile when driving.”

He may no longer be in power, but its likely the same sentiments about drive-texting will be expressed by the new Government.

Guest Article by Neil Camp

Pressure on car insurance premiums is unrelenting and one top motoring organisation has recently weighed in with the idea that older motorists need an urgent review.

The costs of car insurance does decrease with age for most people, but this new report from the RAC does raise the worrying spectre of an increasing number of older motorists using the roads.

But far from being antagonistic to such courses, the 2010 RAC Report on Motoring discovered that some 85% of questioned motorists aged 70 or over were in support of refresher driving courses. What’s more, some 70% of all motorists said they were in favour of compulsory medical checks at the age of 70 and over.

The RAC point out that over the next 20 years, the number of older drivers is set to double, to over six million.

And the RAC has won the backing of one venerable driver, Sir Stirling Moss, OBE. When talking about driving at an older age, he said:
“As an 80 year old driver, I can clearly relate to the topic of elderly motorists and I support the idea of tests for the older generation. So many things have changed since we first started driving: road layouts have been altered and the density of traffic has risen enormously, especially in the cities.

“The statistics show that although as a group we are less likely to be involved in an accident, we are more likely to be the cause of an accident, whether we are caught up in it or not – a sign that our reaction times are not what they once used to be. We do not need to give this generation a full driving test again, however, perhaps just a simple competence test every three to five years from the age of 70, to make sure we are still capable.”

The report went on to show that around 80% of people over 70 have been driving for well over 30 years, whilst some 45% have clocked up 50 years of driving experience. But of those two groupings, virtually all of them (nearly 90%), have no assessment, or other driver training, since passing their original test.

And of the 85% who thought that some form of refresher driver training was a good idea, with the most popular supplements to what’s included in the standard driving test being:

• winter weather driving (53%);
• night driving (45%);
• how to park properly (44%);
• how to drive on motorways and dual-carriageways (43%);
• how to cope with junctions (40%);
• learning about the car itself (33%).

David Bizley of the RAC said:

“The Government must consider the impact on motoring of our ageing population as part of its wider strategy for dealing with the retirement of the baby boomers. Motorists of all ages clearly believe in the value of refresher courses to improve old skills and learn new ones.
“Reviewing this now will save considerable pain in the future and continue the journey towards safer roads for everyone.

“Older motorists have the challenge of personal mobility and independence and RAC would welcome Government initiatives to help them to continue to drive safely. We need to take an evidence-based approach as to what checks should happen and at what age. Older motorists are resistant to any compulsory checks understandably, but they are also much fitter and healthier now than ever before – 70 could well be the new 60 for motorists’ health.”

So this can only be good news for all those people out there worried about car insurance costs.

Guest Article by Neil Camp

There have been a number of motorbike insurance increases and these are due, says insurance giant Aviva, to more motorcyclists carrying pillion passengers.

Aviva says that the motorbike insurance increases are coming as a direct result of more claims by pillion passengers against the motorcyclist. The insurance leader reckons that there has been a 57% increase in bodily injury claims against motorcyclists since 2005.

And the motorbike insurance increases of around 51% in the same period, can be directly attributed say Aviva to the more litigious nature of motorcycle passengers.

As Aviva point out, the number of motorcycle accidents in the UK is still a major worry for the authorities, road safety groups and police force, another major factor behind the recent motorbike insurance increases. Motorcyclists account for nearly 35% of deaths on UK roads, yet only account for 1% of the overall traffic.

Aviva motoring expert Nigel Bartram, said:
“These are certainly sobering statistics. We believe that the upturn in bike claims, particularly bodily injury claims, is a consequence of more riders opting to carry pillion passengers. Congestion and fuel costs are certainly issues of concern for all motorists, so taking the bike out rather than the car can save on time and money.

“However, carrying a passenger can affect the way a bike handles in relation to stopping distance, cornering and steering, so we are advising riders to take extra care, and to seek expert help if not completely confident.
“Now that summer is here more bikers will be taking to the roads. We are trying to raise awareness that, whilst biking can be a liberating and extremely enjoyable experience, it is still a vulnerable activity that requires acute awareness of risks and hazards that are associated with travelling on two wheels.”

A medical expert added his opinion. Team manager for Casualty Reduction at Norfolk County Council, Iain Temperton, said:
“It is a sad fact that a large proportion of rider fatalities in Norfolk are caused by rider error. Carrying a passenger can make the challenge of riding a bike more difficult and I would urge all riders to take any opportunity to enhance their skills. Courses are available via local Constabularies or local authority Road Safety teams.”

Aviva Insurance advise that all motorcyclists should make key checks before they opt to take pillion passengers out on the road.

These include making sure that the passenger is using a satisfactory helmet and clothing. The motorcyclist has a crash helmet which is a British Standards approved model and wears clothing that is safe and protective on a motorcycle. Secondly, that the motorcyclist ensures that their bike is equipped to take a pillion passenger safely, and that it is set in terms of suspension, tyres and mirrors, and other vital adjustments.

Because only when the statistics improve, will motorbike insurance increases slowdown.

Guest Article by Neil Camp

Insurance giant Aviva has congratulated the financial advisors who have played a key part in ensuring families have at least some form of protection, by getting them to sign-up to the company’s free life cover for new parents initiative.

The Aviva free life cover was first launched in July 2009 and has since then provided over £50 million in free cover to new parents, some 30% of which have come via financial advisors.

Aviva explained the facts behind their free life cover, highlighting the fact that every year in the UK, 700,000 babies are born and some 36,000 people die leaving financial dependents. What’s more, of the UK’s five million families, 56% of them do not have adequate protection.

The Aviva free life cover scheme provides £10,000 free life cover per parent, per child, for a period of one year, from birth to first birthday.

Head of Protection at Aviva, Louise Colley, said of their free life cover: “It’s fantastic that 29% of registrations for our free cover came through Financial Advisers. We know that this is proving to be a real foot in the door for advisers, and recognise the importance of this as a conversation starter. All new parents want to know that their children will be provided for should the worst happen, and registering for a years’ worth of free cover with Aviva makes it really simple for them.

“We really want to encourage advisers to use this as an opportunity to stimulate the market to reduce the protection gap, even if this does not long term result in a sale for Aviva. We all recognise the huge scale of the protection gap and hope new parents cover provides advisers with a new reason to have the conversation about protection and be able to approach the delicate subject of supporting customer’s families should the worst happen.”

Guest Article by Neil Camp