Tens of thousands of pensioners who were sold the wrong type of annuity with two of the UK's biggest insurance companies are to receive compensation.
Some estimates say that up to 200,000 pensioners - some of whom are unwell - could typically receive £2,000 each. Prudential and Standard Life have agreed to review hundreds of thousands of policies, which go back to July 2008. Standard Life has set aside £175m to cover the compensation programme.Analysts have said that Prudential is likely to have to pay at least £200m. It follows an investigation from the Financial Conduct Authority (FCA), which concluded that between 39 and 48% of those sold annuities by both companies were provided with "insufficient information".Many of those people may have qualified for so-called enhanced annuities. Enhanced annuities pay consumers a higher income, on the basis that they are in ill health and are likely to live for a shorter period than average...More here