§ Mr. SayeedTo ask the Chancellor of the Exchequer with regard to the current pensions mis-selling review what is the Savings and Investment Board's estimate of the likely total cost of the compensation that will be paid by the life assurance industry; what is the breakdown of this estimate between with profits and unit linked policies; and what proportion of the costs incurred by with profits policies the Savings and Investment Board has estimated will ultimately be met by policy holders through reduced future bonuses. [55536]
§ Ms HewittThe FSA estimates that the total industry bill for the pensions mis-selling review will be in the range of £8 billion to £11 billion. These figures were contained in the FSA consultation document, copies of which were placed in the Library in March. There has been no estimate made of the split between with profits policies and unit linked policies. Nor is it possible to predict what proportion of the estimated total cost incurred by with profits policies will be met by policy holders through reduced future bonuses, due to uncertainties about the ultimate cost to firms.