Taking tips from the TUC

The insurance industry is still seeking parliamentary attention on employers' liability and the Financial Services Authority's capital adequacy regime, although higher education funding and the aftermath of the Iraq war will dominate the political agenda during the next month or two.

The Trades Union Congress is also voicing concerns about some of its key issues being overlooked - if this powerful organisation is worried about not getting a look in, what chance does the insurance industry have?

That said, the insurance industry will do well to take note of the issues the TUC general secretary, Brendan Barber, thinks ought to be at the top of the political agenda as he has genuine influence.

Top of his list is "the hugely important crisis in the pensions system", followed by low pay and public sector reform. The TUC sees the life insurance industry and the big occupational pension funds as the main culprits failing to deliver on pensions, and wants the pension funds and insurance companies to take the pain of failing investment returns. With all the pressures on insurers' capital as a result of regulatory reform this will not be a welcome message.

Mr Barber's final key issue - offshoring - should ring even more alarm bells in the industry. He made it clear the unions are angry and concerned by the migration of thousands of call centre and back-office jobs to the Indian sub-continent (see feature, p24). Unions want to promote what Mr Barber described as "consumer power" boycotts of companies that shift call centres offshore without regard to job losses in the UK or the quality of service offered to consumers.

Many MPs, particularly those with constituents who are adversely affected, will be ready to back such campaigns. Consumers are growing ever more disillusioned with the quality of service from call centres, believing offshoring is to blame. It is up to the industry to dispel this impression.

If consumer power boycotts do gain momentum, it will be the insurance industry in the firing line.