Context
The Association of British Insurers (ABI) has published an article in relation to the Government’s announcement that the Dormant Asset Scheme will be expanded to some insurance and pension products. The Dormant Asset Scheme is an independently run scheme to which firms can sign up voluntarily and from which funds are donated to charitable and civic causes.
Key points to note
- The announcement means that money untouched for a long time in certain insurance and pension products will be made available for charitable causes in circumstances where a customer cannot be traced.
- Once the money has been transferred into the scheme a customer can still access the policy and reclaim it in full from the provider.
- There is an estimated £2.1b dormant assets in the insurance and pensions sector.
- The ABI has provided guidance for customers to be able to trace and claim insurance policies https://www.abi.org.uk/data-and-resources/tools-and-resources/tracing-an-insurance-policy.
- Term insurance and whole-of-life insurance products will be included within the scheme.
- General insurance assets and assets held by mutual insurers and friendly societies will be excluded from the scheme.