Carpetbaggers have besieged Standard Life and Scottish Provident in the past few days, in a scramble to buy insurance policies that they hope will entitle them to free shares.

Both companies have raised their minimum premium rates for savings policies in a bid to quell this demand, and have stressed that they have no plans to follow Canada Life to become a publicly quoted company.

Standard Life raised its minimum monthly premiums on its with-profits policies from £10 to £50. The new rates apply immediately, raising the minimum annual investment from £120 to £600. Scottish Provident also increased its rates, hiking them from £25 to £60, forcing investors to make a minimum annual investment of £720.

Standard Life general manager, Mr Alan Ashe, said the company was committed to remaining as a mutually owned group but had been forced to increase its premiums to protect its existing customers. The higher rates had also been introduced to prevent its offices from being overwhelmed by speculative investors.

Meanwhile Scottish Provident marketing manager, Mr Eanna McCluskey, said the company wished to make a very strong statement that it did not intend to change its status.

The wave of interest in the companies has been fuelled by the recent announcement of a planned flotation by Canada Life. The company had repeatedly denied that it would change its status and had also put up its premium rates months before the announcement to taper the demand from speculative investors.