Insurance company Royal London is to change its membership requirements to deter potential carpet-baggers.

The insurer, which has one million members and funds approaching £30bn, has stated that, from July 1, applicants for new policies will not be entitled to any compensation for loss of membership that may possibly arise if it was to demutualise within three years of the policies commencement.

Royal London said: “The measures are being taken to avoid any disruption to the business brought about by speculative buying of policies, so that the company can uphold standards of service to existing members and customers.”