As a result of its failure to protect policyholders with Equitable Life Assurance Society, the UK government has offered apologies.

Chief Secretary of the Treasury Yvette Cooper admitted that regulators failed to spot “maladministration” at the insurer, just as a senior judge to rule on how much compensation each person would receive was appointed.

Judge John Chadwick will assess how much of the blame lay with the regulator and what share of the £4.9 billion in losses would be paid by the government.

Speaking to the Parliament in London today, Copper said: “I wish to apologise to policy holders of the public bodies and successive government responsible for the regulation of Equitable Life between 1990 and 2001.”

This apology, according to reports, suggests the beginning of the resolution of the controversy over who to blame for the near collapse of the insurer in 2000.

Up to 1 million policyholders in the UK and about 15,000 others in the rest of Europe were affected as their pay outs were cut.

In a separate development, a firm has advised people who have recently quit smoking to renew their quotes on any life insurance policies they have taken out.

This is because they would be able to save up to £30 a year on their policy if they rearrange their deal, it said.