America’s National Association of Insurance Commissioners (NAIC) has matched 46,665 lost or misplaced life insurance policies or annuities with their owners/beneficiares through the roll out of its locator in November 2016.
This equates to $650.5m (£522m, €586m) in potentially lost income recovered by the service.
While the UK has its Pension Tracing Service, which was set up by the Department for Work and Pensions to help people locate their lost pension pots, no such service exists for life policies.
So, does the UK need to adopt the NAIC’s approach?
Different markets
Paul Avis, marketing director for Canada Life group insurance, told International Adviser that he sees “no requirement from the consumer or industry bodies for a service like this because the UK market is smaller and for individual consumers it is rare that people forget they have got some form of protection”.
“The difference between the UK and the US is that it is a much larger market in the states. There is something like 300 million people, when we are 65 million, so there is a greater need there,” Avis added.
“Unless you are a distant beneficiary, most know what the coverages are because people mostly have joint life policies.”
Simple tips
Avis added that there are some simple tips that people can heed to make sure they remember their policies and providers.
“Presumably, you need to have an up to date Will, and in that you would highlight that you have a policy,” he said.
“You would keep your papers all in one place, so if anything is to happen then they can easily be found.
“Those tips would overcome losing a policy.
“Also, most people pay via a direct debit. So, when someone dies you would look at their bank account and spot the payments to a life insurance firm.”
