Aviva slashes inherited estate payout

As Aviva announces a new offer over the reattribution of its inherited estate, which will see the average payment offered to policy holders slashed from £1,000 to £600, Which? chief executive Peter Vicary-Smith, says: "Policyholders will be disappointed by the cut in the payout. The FSA's continual failure to defend policyholders' interests has cost them a substantial amount of money.

"Which? believes the FSA effectively looked the other way while Aviva plundered the inherited estate to pay shareholder tax bills, subsidise new business, pay misselling compensation costs when the company broke the rules and prop up a deficit in the staff pension scheme.

"Policyholders deserve a regulatory framework based on a clear set of principles which guarantees that all of the inherited estate is used in their best interests. The FSA needs to act now instead of ignoring the criticism of Which? and the Treasury Select Committee."