British ins sector plunges on looming review

LONDON, Mar 29 (AFP): Shares in British insurers slumped on Friday as regulators revealed plans for a review of charges and restrictions on 30 million policies sold between the 1970s and 2000.

The Financial Conduct Authority (FCA) will launch a probe into the fair treatment of long-standing life insurance customers on Monday, alongside publication of its business plan, the regulator confirmed in a statement.

The FCA will investigate the treatment of customers who took out products worth £150 billion ($250 billion, 181 billion euros), including private pensions, endowments, investment bonds and life insurance, over the 30-year period.

The news sent top insurance firms tumbling, with Resolution plunging 7.36 per cent to 295.5 pence, Aviva diving 4.90 per cent to 459.8 pence and Legal & General down 3.85 per cent to 204.2 pence.

Prudential dropped 2.97 per cent to 1,276 pence and Standard Life lost 2.05 per cent to 378.4 pence on London's FTSE 100 index, which was down 0.60 per cent at 6,628.28 points in afternoon deals.