Standard Life UK sales drop 27%

I have been a critic of this firm for several years, who I think is an absolute past master that is shooting itself in the foot. It is a testament to the maladroit management of this firm how a company that was regarded with great esteem as one of the leading life assurers in the UK can have fallen into the depths of such disrepute.

We all have our never ending lists of issues and irritations that Standard Life, who in a very patrician and high handed manner, seems to completely ignore. They are now reducing their undoubtedly hard pressed work force yet further and retreating to their fastness in Scotland like some beleaguered medieval baron locking himself up in the keep.

The only real chance thy had for a turnaround was sacrificed when they lost Trevor Matthews - he saw the cancer and had valiently started to address it. It reflects the entrenched reactionary nature of the company that they allowed to let him go.

Indeed the poor paperwork and abysmal administration that comes from head office will stand as a testament to the antipathy that this firm has built for itself over the years and going forward it is a wonder that Standard Life continue to receive any business at all.

A n almost 30% drop in sales has let them off lightly.

The latest corporate results reflect a down turn which they conveniently now ascribe to the financial situation. Their spurious awards and accolades do not reflect the enormous decline both in their standards and performances over the past several years. The new Chief Executive for whom they are now searching will indeed be handed a poisoned chalice.

The figures go to show what the real cost of the shenanigans on the Sterling fund were. Not sure we need a TCF initiative when its clear that if you treat your customers shoddily as Standard Life tried to do, they will walk. Whoever was responsible for trying to reprice the Sterling fund should be told that the fall in sales is his or her fault.

As for the investment bond deals, all they need to know is the cheesy line "Turnover is for vanity, profit for sanity".

Lets hope Standard Life learns its lesson. I have to say I disagree with Harry about service levels - I dont recommend Standard Life much but have found them to be pretty good. I get very good service on existing policies too and have found the company to be far better in this respect than most of the competition.

I also have to disagree with Harry, which is an unusual thing in itself, in that the service levels I have received from the SIPP centre have been very good, in the main. I must admit I do not use them for much else and their corporate offerings lost any interest years ago but the SIpp's are ok.

On the other hand I found the Sterling fund debacle reprehensible in the extreme with little or no regard to their clients or IFA's that used them. The attendant arrogance on the reversal of the decision that " surely now we've done this everythings all right again" was almost as bad. Their response to my personal complaint for the time it took to sort out the mess also was met with an arrogant "no" on the basis that it had not created any issues that they could be held responsible for, if not Standard Life then who then?. Perhaps this set of results will be the cold hard shock they need to get their house in order before it is to late.

Standard Life should not blame a fund for the drop, it needs to look at how it handles communication. When I had clients telling me what was happening before Standard did it made me look stupid, and when Standard had to admit they cocked up, did they ackowledge that it was IFAs who pressured them into reversing matters, no they did not.

It has just happened again, They are now writing to pension members in Lifestyle funds, sugesting a move, because of the Sterling fund, but have we had a copy, have we heck, and again clients are ringing up asking what is it all about.

Standard Life have this arigant belief that we are always on their website, well I am not. As a result of their handling of these matters they have lost 3 cases worth over 1.2M

Reading Philip Wises comments it would be interesting to find out how many IFAs complained to Standard Life. I complained and had a visit from the regional sales manager, nothing in writing, no apologies just him saying that the sales lads were doing their best.

The sales consultant I have is good but he wo'nt get any more work out of me because of Head office arrogance.

I just wonder if this lack of comminication is leading to something more sinister, such as the old trick of switching IFA clients to their direct sales arm, hoping we do not notice. It has happened before

With the unbundling of products and investment funds, Standard Life as with some other Life Insurers are retreating to an electronic platform proposition (Whilst some may also continue to offer life assurance and annuities).

This requires much less presence at a local level and much thinner profits on their activities.

Standard Life may or may not survive this transition - they have a better chance than some competitors but I feel there is still much consolidation and pain for the Insurers to go through before this ends.

With this in mind I have remained pleasantly surprised with the level of service Standard Life have tried to maintain. This will inevitably deterioate but I am not yet willing to withdraw my support for them -They have been on the whole very good to IFAs over the years and who knows what the alternatives will eventually be.