But director general insists trade body still represents 90% of the industry

ABI director general Otto Thoresen said he is “disappointed” that insurance group Legal & General has chosen to resign its membership of the trade body.

Thoresen said: “As a trade association, of course we are disappointed by the resignation of a member. However the ABI’s continuing strong membership represents over 90% of the insurance sector.

“The great advantage of the ABI is that our members work together across the usual corporate boundaries to tackle issues that are important to consumers and to deliver an agenda for reform.”

Thoresen pointed out that in the past 12 months the ABI has put forward a blueprint to get retirement guidance to every saver, proposed civil justice reforms to reduce the cost of insurance for motorists, developed Flood Re and negotiated and delivered Solvency II “in a way that that allows long-term products to be provided to UK pensioners”.

He added: “Working with our members, we will continue to drive the reform agenda forward to make markets work better for customers on policy areas as diverse as pensions, use of data, welfare policy, tax and regulation to ensure the UK insurance sector continues to contribute positively to the economy and society.”

AXA UK chief executive and ABI chairman Paul Evans said: “The Board of the ABI believes the industry is at its most effective when it works together and I strongly support the work the ABI is doing to drive forward a packed agenda.

“From pensions to flooding, motor to Solvency II, it is important that we keep focused on the issues that impact our customers and work to bring about the changes that will benefit them.

“As incoming ABI chairman, I believe our trade association has an invaluable role to play in delivering the results that we, and more crucially our customers, need.”