A former insurance broker who made millions when his company merged with a rival earlier this year will today call on the financial services industry and the government to create a national network of advice centres to help lower-paid families make better financial decisions.

Clive Cowdery, chairman of Resolution, one of a new breed of companies which makes money from the run-off of closed life insurance funds, will make the appeal when he launches his Resolution Foundation alongside Stephen Timms, the minister for pensions, at the House of Commons this afternoon.

Hot Topics

What is Life Insurance?
Life Insurance (with terminal cover included) is a form of insurance that pays out a lump sum if you die or fall terminally ill during the period covered by the policy.
What is Mortgage Payment Protection Insurance?
Mortgage Payment Protection Insurance will pay your monthly mortgage repayments if you were off work because of sickness, an accident or unemployment.
How does my age affect my premium?
Age is one of the most influencing variables that affect the premium for any given form of life insurance policy.
Will my life insurance premiums increase over time?
The answer to this question depends upon whether you have a normal “Guaranteed” policy, a “Guaranteed indexed linked policy” or a “Reviewable” policy.
Will my medical history affect my premium?
Yes it will. When an Life company decides how much to charge you, it works out the statistical chances of you dieing within the term of the proposed policy

"Intelligent thinkers in the financial services industry are concerned that it is losing contact with its roots in society and the generation of customers who in the 1970s and 80s provided much of its current capital," he said yesterday.

In order to address this problem, Mr Cowdery wants the industry and the government to fund a network of advice centres for the 8 million Britons he says are caught in the "financial advice gap". These are people earning between £10,000, the level beyond which they become independent of state support, and the national average of £22,600.

According to Mr Cowdery, { loans } most advice from the state caters to the needs of the unemployed, while the financial services industry ignores those earning less than the average because they are simply not profitable. "We all have four or five big financial decisions to make in life. Basic-rate taxpayers have the most to gain from getting these decisions right and the least access on doing so," he said.

The Resolution Foundation will outline its proposals for the creation and funding of the advice network in February. Mr Cowdery plans to spend one day a week at the foundation, which is being funded from his own pocket. His £400,000 salary from Resolution will be used to employ a team of researchers. The rest of its costs will be met from the proceeds of a recent £20m share sale.

Mr Cowdery founded Resolution Life after leaving a senior position at GE Insurance Holdings. His idea was to buy up closed life assurance funds and run them more efficiently while also exploiting economies of scale. Resolution Life then merged with Britannic in June to form a new group called Resolution, which is now valued at £1.2bn and is one of the UK's 350 biggest companies.