01 June 2011 - Temporary closure to all new applications
The FSA rules require that we constantly review our capital requirements. Due to the performance of our healthcare policy book our capital requirements have changed. We are carrying out a review of our requirements and whilst we do so, and with immediate effect, we will be unable on a temporary basis to issue any NEW policies but all existing policies will be fully serviced.
We have made this decision to ensure the capital integrity of the business is robust and delivers a sustainable future.
As a mutual our main focus is to protect the best interests of our policyholders.
Jonathan Long
Acting CEO
Society Background
For over 140 years, National Friendly has been helping people with their health, protection and savings needs. We pride ourselves on offering innovative products and personal service.
As a mutual organisation, we have no shareholders and are therefore focused on satisfying our customers’ needs. Intermediaries can be confident that with National Friendly, their clients’ care will always come first.
Changes to Healthcare Depost Account HC2/2a/2b terms from 1/10/11
From Wednesday 24 to Friday 26 August we will be writing to all 7,000 of our HC2/2a/2b Healthcare Deposit Account policy holders. The mailing is being sent 1st class, so will begin arriving with your clients from Thursday 25 August.
This is an important communication that confirms:
• Under what circumstances we can alter their policy terms
• Our updated claims processes
• Updated terms & conditions on what’s covered & what’s not
• The likelihood that own shares will increase again
• Clearer wording on when loyalty rewards are paid
• What to do if they no longer wish to accept these updated terms
The core purpose of this communication is to ensure we are complying with the principles of Treating Customers Fairly, by better explaining parts of their policy which were previously unclear. The HC2, HC2a and HC2b variants of the Healthcare Deposit Account were supported by policy documents that were updated on a regular basis for new business. This communication now brings all these policies in line, ensuring clarity, fairness and swifter administration.
A copy of the communication is attached below and includes a letter, a summary sheet explaining why we’ve made changes to what’s covered and a booklet detailing the revised terms. Only the Account Holder, or proposer in the case of a child account, will be written to.
If you have any questions please contact Intermediary Support on 0800 970 3703 (9am-6pm weekdays).
Ian Talbot
Chief Commercial Officer
• HC2 Letter
• HC2 Summary Sheet
• HC2 Policy Terms