Until recently, I thought the banks owned the most misleading marketing straplines in the world of financial services. ‘By your side’ is one of my current favourites as more branches close, overdrafts increase and interest rates sit at stubborn lows.
However, the recent takeover of L&G policies by ReAssure means, reluctantly, I’ve had to reassign this award.
I recently received a letter from ReAssure chief executive Matt Cuhls informing me it was the sixth-largest life and pensions provider in the UK, taking care of four million policies and £70bn in savings. So, £17,500 per policy? That does not sound like a profitable business to me.
The letter went on to say ReAssure specialised in this type of transfer, having successfully taken policies from Barclays Life, Guardian and HSBC. I am in good hands, apparently.
We recently needed policy information on a transferred client. As our L&G online portal was lost on transfer, we followed the ‘Your questions answered’ pages attached with the CEO letter.
“The easiest way to get in touch with our specialist adviser team is to call this number,” it said.
Automated message
So we did, only to get an automated message telling us it was experiencing exceptionally high call levels and the wait could be up to 30 minutes. This from the “specialist”. Could it not predict there would be a large influx of calls due to the transfer?
Eventually we spoke to a disinterested member of staff who we realised, after we had hung up, had given us incorrect information. Not wanting to wait another excruciating 30 minutes, we tried emailing a valuation request. This was on 17 September, and we finally got a reply on 7 October.
We have also had to ask twice for our online access to be set up and are still awaiting acknowledgement for that.
There’s more. We requested a withdrawal history in writing for the unfortunate client caught up in the transfer. ReAssure’s reply read as follows: “Thank you for getting in touch about receiving withdrawal history. As part of the transfer we have received this information… however, as withdrawal requests are extremely time intensive, we have decided as a business to decline requests of this sort.”
The letter added we could find this information ourselves by looking at the client’s bank statements.
So, let me get this right: ReAssure — the “specialist” whose “safe hands” I am in — has the data, yet it wants me to ask the client to go through his past 13 years’ bank statements looking for withdrawals. Why didn’t I think of that?
Fortunately, we have the data; I just wanted to know ReAssure had the same data, to avoid any tax consequences on the client’s next withdrawal. You know, to be reassured.
‘Better service’
The letter added it hoped we would appreciate this decision was not easy (of course it was) and was made to provide a better service to the majority of clients. How patronising.
You are taking the same fees and providing a reduced level of service.
Your business model has to provide a meaningful service to four million clients with an average sum of £17,500. Transferring investors’ money against their will and offering a lower level of service is not a sustainable business model.
Hannah Goldsmith is founder of Goldsmith Financial Solutions
Oh Hannah how right you are. I am just trying to transfer funds within a SIPP , unfortunately the funds are in trustee investments with Skandia, Old Mutual, Reassure. So far three days to carry out a simple fund switch. I am not reassured.
Hi Hannah,
Catalogue of disasters with ReAssure for a number of clients who are trying to retire. Customer services do not understand S32 contracts and cannot put you through to someone that does, they promise a call back in 48 hours and if this actually happens it is another individual that does not understand the contract. They should have foreseen an increase in enquiries and then further demand due to lockdown. I am afraid my understanding of their business model remains unchanged; hang on to assets to increase income and reduce expenditure on service = higher profit. No-one can move assets if we don’t send out any information or even better send out inaccurate information, which increases the number of return calls. Complete shambles and not doing L&Gs name any good either
We received this message from ReAssure while we were checking contribution histories in the FCA’s innovation sandbox. Blame Covid-19!
I’m sure you’ll appreciate we need to do everything we can to service and support our customers in these difficult times and as a result we are only able to provide a full history for a 2 year period.
For this particular case I’ve had a look at our records and I believe this policy came across to us from Alico and is no longer premium paying. According to the data we were provided this policy last paid a premium around November 1992.
Hannah
I have recently had the misfortune to deal with ReAssure who are just a disaster from start to finish. Having had a policy transferred from Legal & General which has been in place for 18 years and paid a monthly income to a vulnerable relative ReAssure took it upon themselves to stop paying the income but decided not to inform me as a trustee. When I questioned it I was told that my relative had moved – he has lived in the same property for 20+ years! I could not get ReAssure to understand that he hadn’t moved or changed address. It has taken 2.5 months to sort out following countless emails and calls where on average you hold for 45mins. ReAssure has never returned a single call or email and offered the policy holder a paltry £125 in compensation and then just closed the complaint. Of course they try and hide behind the Covid excuse but the bottom line is that their administration and systems are simply not fit for purpose.
I’ve had one experience of ReAssure and I hope its my last. Absolutely horrendous. In part, I feel sympathy for the operators on the telephone for being left high and dry. Personally, I’d leave.
For the ones who remain that I have dealt with, they are unhelpful and dis-interested. In 2020, its a disgrace that this level of customer service is offered. Shameful.
If you haven’t already done so, take a look at the new ReAssure Now website… you have to tell it which policies are in your agency, one by one. Lazy
I wonder if those at L&G who decided on this sale gave any thought to the image this has cast over L&G.
Not one more penny will ever go to L&G from me. Are they going to sell our clients out in the future?
Shame on you L&G … i hope you enjoy your bonus whilst the rest of us clear up your mess!
Ditto, they are truly appalling.
The FCA really need to take a look at this firm now. They are awful to deal with and getting information from them is very difficult.They come across as deliberately obstructive.