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. 1998 Aug 1;317(7154):343. doi: 10.1136/bmj.317.7154.343a

Tobacco link with insurance

Allied Dunbar is owned by BAT Industries and endorsed by BMA Services

Charles Siderfin 1,*
PMCID: PMC1113638  PMID: 9685289

Editor—As a general practitioner and a member of the Labour party, I was disappointed by the British government’s controversial plans to exempt Formula One motor racing from the proposed tobacco advertising ban.1 I am, however, heartened by the robust stance of the BMJ and BMA in their continued campaign to reduce the influence of the tobacco companies.2,3

I was thus surprised to discover, through an article in the magazine GP,4 that I was being actively encouraged by BMA Services to invest in a company (Allied Dunbar) entirely owned by the tobacco giant BAT Industries. Fortunately, I learnt of this connection before taking out a life insurance policy with the company.

BMA Services provides independent financial advice to members of the BMA and their families. All financial products are vetted by BMA Services, and policies are recommended to their clients from a shortlist of financial institutions, the “best advice panel,” which is reviewed every six months. Allied Dunbar and Zurich Life are two companies on the panel. BAT Industries have owned Allied Dunbar since the mid-1980s and it is considering a merger with Zurich Life.4 BMA Services is jointly owned by the BMA and Jardine Insurance Brokers, each of which receives 50% of the profits. It would therefore seem that it is not only the Labour party that has benefited from tobacco industry money.

In this day of ethical investment, representatives of BMA Services should at the very least have a duty to disclose all important ethical or material facts about the companies they are advising their clients to invest in. A proverb states: “He who lives in a glass house should not throw stones.” Perhaps the BMA should consider whether Allied Dunbar (and Zurich Life if the proposed merger goes ahead) should remain on the list of companies recommended by BMA Services.

References

  • 1.Kmietowicz Z. UK exempts motor racing from advertising ban. BMJ. 1997;315:1251. doi: 10.1136/bmj.315.7118.1251. . (15 November.) [DOI] [PMC free article] [PubMed] [Google Scholar]
  • 2.Delamothe T. UK government fails its first test on public health. BMJ. 1997;315:1325–1326. doi: 10.1136/bmj.315.7119.1325. [DOI] [PMC free article] [PubMed] [Google Scholar]
  • 3.Warden J. UK adheres to Formula One exemption. BMJ. 1997;315:1397. [Google Scholar]
  • 4.Andalo D. GP shock at tobacco link with insurance. GP 1997 Nov 7:25.
BMJ. 1998 Aug 1;317(7154):343.

Reply from BMA Servies

John Winn 1

Our activities in financial planning are regulated by the Personal Investment Authority. One of the many requirements of this body is that we are able to show why we advise members to place their business with particular insurance companies and investment houses. Part of this process is the work that goes into the compilation of our “best advice panel” and the criteria that we use for selection. Much of the work related to the panel is undertaken for us by an external firm of consulting actuaries that specialises in providing information on subjects such as financial strength and past performance.

When this company considers these elements, along with many other aspects such as the flexibility and charging structure for each product, it then refines these into the panel that is used for different product areas. Allied Dunbar is a strong company financially, and some of its products rank highly for flexibility, competitiveness, and charges. It was for this reason that we have included, when appropriate, its products in our panel.

Our board meeting agreed that we should continue to recommend policies from Allied Dunbar when these were the most appropriate to meet the needs of individual members. However, we also recognise the concern expressed by Siderfin about the parentage of Allied Dunbar and the wish that individual members may have to avoid this particular company.

Some months ago we altered the advice process that we undertake with individual members to point out the possibility that Allied Dunbar may be used as a preferred insurance company. If a member indicates that he or she does not wish us to recommend Allied Dunbar this is taken into account when the appropriate financial plan is drawn up.

We are aware of the proposed merger that may include Zurich Life. Although details of this merger have been announced, there is still a considerable amount of discussion taking place between the two companies; the resultant group, which is likely to include Allied Dunbar, Eagle Star, and Zurich Life, will not become operational until later in 1998. If this is the case then we would follow the same course of action for Zurich Life as for Allied Dunbar so that individual members are aware of the situation and can select an alternative insurer if appropriate.

Articles from BMJ : British Medical Journal are provided here courtesy of BMJ Publishing Group

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