Combined Insurance Company of America?? Pls advise

Bigsmak

I just met with a client who has a policy with Combined Insurance.. I was wondering if anyone's opinion of them has changed in the last few years since this thread was here

DHM_2

The debate is settled....:T

The Financial Services Authority (FSA) has today fined Combined Insurance Company of America (CICA) £2.8 million for failing to embed fully a culture that ensured its customers were treated fairly. CICA has agreed to carry out a review of past business to identify any customer detriment and pay redress.
CICA sold accident and sickness insurance products via self-employed sales agents. During the period investigated by the FSA (1 April 2008 to 26 October 2010) CICA had 542,133 policyholders and received £47 million in premiums for new policies sold. Its customers were typically self-employed, small business owners or manual workers.
In August 2010, as a result of concerns the FSA had about CICA's business, the FSA required the firm to undertake a skilled persons (Section 166) report to examine CICA's governance and controls framework. The firm subsequently agreed to cease writing any new business from 26 October 2010.
The FSA found that CICA breached FSA Principle 3 (management and control) and Principle 6 (customers' interests) by failing to manage effectively its sales processes, claims handling and complaints handling to ensure the fair treatment of its customers. The FSA identified systemic failings across much of CICA's business. In particular:

• CICA's recruitment procedures focussed on the quantity rather than the quality of recruits. There were no minimum qualification requirements for agents and employment references were not always obtained;
• CICA did not have adequate systems and controls to ensure that its sales agents had the necessary skills and knowledge to provide suitable advice;
• CICA did not ensure that its sales agents recorded all relevant information when advising customers on the suitability of insurance products;
• the remuneration structure for the sales force was high-risk with agents paid on a commission-only basis, based on sales volumes with insufficient emphasis on the quality of sales;
• CICA failed to take consistent and effective action against sales agents who were subject to customer complaints or who had breached company rules;
• CICA did not put in place adequate controls to monitor its claims handling process; and
• aspects of CICA's complaints handling procedure and the accompanying systems and controls were inadequate.

Tracey McDermott, acting director of enforcement and financial crime, said:
"CICA's widespread failures reflect a culture which did not recognise the importance of treating customers fairly. This created a significant risk that customers would not get a fair deal.
"Firms must ensure that protecting the interests of their customers is at the heart of every aspect of their business."
CICA settled early with the FSA and received a 30% discount on its fine. Without the settlement discount the fine would have been £4 million. The FSA also took into account that CICA had already taken steps to address some of the issues raised by the FSA.
The FSA has worked closely with the Central Bank of Ireland which has taken its own enforcement action for similar misconduct in the Irish subsidiary of CICA.

2sides2everystory

The Financial Services Authority (FSA) has today fined Combined Insurance Company of America (CICA) £2.8 million for failing to embed fully a culture that ensured its customers were treated fairly.

I think "today" was 19th December but no matter - first time I'd seen this so thank you DHM.

It is a very interesting form of words for FSA to have chosen to prosecute. I can't help thinking that the CICA case may be the sprat with which FSA hopes to scare the mackerel (I can't see it actually catching any, can you?). It was the FSA's smaller firms branch that prosecuted this to a conclusion. Pity FSA won't be around long enough for it to use the same device as best practice against the ills of the larger firms.

Nightshade11

Received an official-enough looking letter from Combined Insurance Company of America last week. It was delivered to my parents (so my childhood) address. The letter has a policy number for me, but I have no idea what policy it refers to. I have never taken a policy with this company (never heard of them!!). As it was delivered to my parents address, I guessed they had taken a policy out on me, however neither have. Have checked all bank statements and no money is going to this company. Can anyone advise? I know I could log on to site and check Policy number, but weary of scam.
Any one else had this happen???

dunstonh

I guessed they had taken a policy out on me, however neither have.

Many CICA plans were white labelled. i.e. sold under a different brand.

Can anyone advise?

ask them.

fluffybear

Combined ... I hate this company with a passion - They 'stole' my money over many many years and eventually we cancelled the policies..
We originally took out a sickness policy, were told that it could be claimed on from day 1 of sickness... After years of cold callers and paperwork never turning up I eventually called the office to find very unhelpful people.... The final straws were when we received a cold call,we told him we wasnt going to buy, he insisted that we just listen and he would come back another day IF we decided to add this item to the policy... 2hrs later, he finished, we told him throughout the conversation we wasnt making any decisions that night.... When he finally realised we were serious, he got quite nasty and he was thrown out of my house by my husband, with an official complaint to his company..... Cold callers continued to harrass and eventually we felt we had no choice but to cancel as a note on the system saying no cold calling didnt work...
I soooo wish I could of got all my money bak from this company, lies and pushy salesman, not a good combination..... Lots more to this story but I think I have bored you enough !!

charlysez

I have just found a life insurance policy taken out by my late uncle in 1981,
after reading this thread I wonder if there is any point in pursuing it and if I do where do I go?

4_Pete's_Sake

I worked for CICA from September 1981 to March 1983, selling Whole Life Policies. We targeted people who had got the Company's Accident or Sickness Policies. I didn't know much about insurance at the time and the training involved learning a script almost parrot fashion concerning CICA's whole life policies that gave initial cover of either £600, £1200 or £1800 but these could be built up by paying additional premiums to provide cover of £3k, £6k or £9k. Before I left they also introduced a policy giving cover of £2400 that could be built up to £12k.


I was quite successful at converting the leads into sales and won several Sales Awards at their regular Team Building Sessions held at various hotels. However after almost 18 months in the job I began to do research of other life insurance policies and realised that what I was selling was total garbage :eek: and inappropriate for the needs of most customers. Therefore I quit and went to work for an Insurance Broker where I was able to sell what people needed rather than the only policy that I had in my briefcase.


Charleysez, I do hope that I did not sell your late uncle's policy, if so, I humbly apologise. I worked in the Midlands, East Anglia and Thames Valley areas.