LONDON, Aug 29 (Reuters) - The Financial Conduct Authorityhas begun an analysis of annuity sales by all Britain's majorinsurers since 2008, which could lead to compensation forpensioners found to have been sold inappropriate products, theTelegraph newspaper said.
More than 600,000 pensioners are believed to have been soldannuity contracts that failed to account for their health in thesix-year period under review, the newspaper said.
Most were never told that conditions such as diabetes orhigh blood pressure could entitle them to an enhanced annuity -providing a fixed income for life - because of their reducedlife expectancy.
Around 12 billion pounds' worth of annuities were sold in2013, according to the Association of British Insurers, but thatfigure was halved last year after the government said over-55sno longer needed to use their pension pots to buy an annuity.
Major sellers of annuities include FTSE 100 companiesPrudential, Aviva, Legal & General andStandard Life.
British insurer Aviva said last year it wouldcompensate 250 customers who should have been sold enhancedannuities because of medical conditions which cut their lifeexpectancy.
The Financial Conduct Authority declined to comment. (Reporting by Carolyn Cohn; editing by Andrew Roche)