The consultation document proposes the repeal of Industrial Assurance legislation. This will be done by a deregulation order. Insurers will also be allowed to merge their industrial assurance funds with other funds and introduce simpler rules for recording payments.
Policyholders can continue with their existing payment method if they wish.
These proposals will also help the industry to bring modern business techniques into this area of the assurance market. The Industrial Assurance Acts were passed in 1923 and 1948 so the law has quite clearly not kept pace with industry changes. Customer protection in the marketing and selling of life investment policies will continue to be provided under the Financial Services Act. The consultation document is being sent to a wide range of interested parties including friendly societies, insurance companies and consumer groups. Notes for Editors 1.Industrial assurance business is characterised by premiums being collected at intervals of less than two months.