Stonebridge Faces Payouts After £8m FCA Fine
Nearly 500,000 people could be eligible for compensation from Stonebridge International Insurance.
The company, part of insurance giant Aegon, was fined £8,373,600 on Thursday by the Financial Conduct Authority for mis-selling accident insurance products.
Those targeted by Stonebridge were on low and middle incomes, without college degrees or professional qualifications.
Between April 2011 and December 2012, outsourcing companies contracted by Stonebridge sold personal accident, accidental death and accidental cash plan insurance products over the telephone.
People were encouraged to buy more expensive products, while contractors responsible for post-sale support actively discouraged people from cancelling their policies.
Stonebridge is contacting the 486,444 customers across the UK and EU who could be affected to determine whether they should be compensated.
It has already paid redress worth £400,000 to affected customers in the UK.
FCA director of enforcement and financial crime, Tracey McDermot, said "firms must take responsibility for their outsourcing arrangements and ensure that they treat customers fairly".