Article date: 5 February 2003
With regard to today’s announcement by the Treasury, wefully endorse their approach in leaving the issue of the price capopen to consultation so that we can continue the discussion on whatan appropriate pricing structure would look like.
We share the Government’s vision of a retail financialservices market where ‘efficient providers of good valueproducts that meet consumer needs are able to prosper’, andagree with the proposal to commission independent research toestablish whether any price cap meets the needs of consumers,industry and Government.
By better understanding how the UK savings market reallyoperates, we believe the Government can achieve a strongerconsensus on what will make these products attractive to sell aswell as attractive to buy.
Commenting, Peter Hales, Sales & Marketing Director atNorwich Union Life, said: “The approach the Government istaking suggests they are keen that Sandler‘stakeholder’ products prove commercially viable forall. We think that’s the right approach. To ensure success,these new suite of products need to be right from the start. Weremain convinced that without a move away from the 1% price capthese products will not be successful.
“In relation to the product proposals, we are pleased theGovernment takes the view that a transparent with-profits styleproduct which offers smoothed exposure to equity markets is likelyto be valuable to many in the target market for these new products.This further re-affirms how important lower risk investments withsmoothing are to UK consumers and builds on the Raising Standardsinitiative to create greater transparency.
“In addition, the proposal to bring the currentstakeholder pension within the new suite of products is somethingwe strongly support. This will provide much needed simplicity forconsumers and the industry.”
Press office contacts:
James Evans, Norwich Union Life 08703 66 68 78
Out of hours 07790 487105
Ian Beggs, Norwich Union Life 08703 66 68 71
Out of hours 07790 487533
Louise Goffee, Norwich Union Life 08703 66 68 70
Out of hours 07810 057362
Notes to editors
- Norwich Union is the UK’s largest insurer. It is theUK’s largest provider of life, pensions and investmentproducts and one of the leading IFA providers. IFAs provide around75% of the company’s long-term savings business.
- Norwich Union has strategic alliances with building societiesand other leading UK brand names including Tesco Personal Financeand The Royal Bank of Scotland Group.
- Norwich Union’s news releases are available on the Avivaplc website at www.aviva.com
- A selection of images are available from the Norwich UnionNewscast site at www.newscast.co.uk