Vol. 471 No. 1
212 Mr. Hughes asked the Minister for Enterprise and Employment the proposals, if any, he is examining in order to ensure that there is absolute transparency in the standards operated by life assurance companies and their agents in relation to the advertising of past performances, charges, fees and commissions; and his views on whether the absence of full disclosure has substantially eroded the confidence of the public in making such investments. [20416/96]
My Department has been examining, in consultation with the life assurance industry and other interested parties, the nature and quality of information and advice required by the consumer in advance of completing a proposal for a life assurance policy to enable the policyholder to make a rational and fully informed investment decision.
A particular problem in relation to life policies is that the proposer may not fully appreciate that these policies are intended as long-term investment commitments and that early surrender can result in returns less than the cumulative premium payments. In recognition of that concern regulations are currently being drafted by my Department which will ensure that consumers are better apprised of the long-term nature of life policies and that the proposer will be given, in advance of the completion of the policy proposal, details of projected surrender values throughout the duration of the policy. The regulations will also provide greater transparency in relation to charges, fees and commissions.
