Reclaim Fund, the HM Treasury-owned operator which is regulated by the Financial Conduct Authority, has seen Aviva become the first participant in the expanded scheme.
Aviva worked with government, industry and RFL for more than six years to expand the scheme, culminating in the Dormant Assets Act 2022.
The move sees Aviva join more than 40 UK banks and building societies that currently participate in the scheme.
Kirsty Cooper, group general counsel and company secretary at Aviva, said: “We have been working proactively with RFL and the wider dormant assets community for a number of years to expand the hugely successful dormant assets scheme to the insurance and pensions sector and adapt it for longer-term products.
“It is great to see the culmination of a lot of hard work reaching fruition and it is such a privilege to be the first participant in our sector.”
She added: “We have been involved with the dormant assets scheme since 2016 and hope that Aviva’s participation will encourage other companies to take part, with the dual purpose of reuniting customers with their assets while also ensuring dormant assets can have a positive impact on our society.”
Aviva said its involvement paves the way for other companies in the insurance and pensions sector to join.
Speaking at a press briefing this morning (June 5), Adrian Smith, chief executive of Reclaim Fund, said he expects the expanded scheme to attract up to £880mn of additional distribution over the next few years, but it will take some time to get going.
Reclaim Fund said the Association of British Insurers (ABI) has been a proactive supporter of the scheme expansion and has developed new resources to help companies in their preparations for joining the scheme.
Hannah Gurga, director general of the ABI, said: “This expansion unleashes our sector’s potential to use the millions of pounds it has in unclaimed assets to support good causes, with customers being able to reclaim their money indefinitely.
“We’re delighted that years of work with government, Reclaim Fund and industry has come to fruition and to see the first transfer successfully completed.
“We hope that other insurers and pension providers will follow and have launched a new participation guide for those who are interested in joining the scheme.”
The scheme is voluntary and all participants need to show they take extensive efforts to trace the original owners of dormant assets so people can be reunited with their funds.
Since the scheme was first established for banks and building societies in 2011, more than £1.6bn in dormant assets has been transferred to Reclaim Fund.
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