Article date: 26 July 2007
Norwich Union, one of the market leading providers in the equity release sector, reacts to the publication of quarter two figures from Safe Home Income Plans (SHIP), the industry body that represents over 90% of the equity release sector.
Elizabeth Boardall, head of marketing, Norwich Union Post Retirement Products, commented: "We are delighted to see the positive results published by SHIP today, which state that this quarter has seen strong growth in the equity release sector. The greatest increase has been seen in the number of drawdown mortgage plans, which now account for almost 47% of all equity release plans sold.
"In addition, the figures show a surge in overall new business entering the equity release market (£302.3 million) - the highest Q2 figure recorded by SHIP. This highlights the fact that the measures taken by SHIP, and equity release providers such as ourselves, to improve our consumer offering has benefited the sector considerably. For example, at Norwich Union we have recently launched an educational DVD and video in order to improve consumer understanding of equity release.
"Following the regulation of Home Reversion schemes in April this year, equity release as a whole is now fully regulated by the FSA. This seems to have given many consumers the reassurance they need in order to consider taking out an equity release scheme.
"SHIPs introduction of compulsory examinations for all advisers wanting to do business with their members post 1 August, will also help to further increase consumer confidence in the market. As a SHIP member, we are delighted to be part of this rapidly expanding sector, and hope that the rest of 2007 will follow suit and lead to further record breaking results to come."
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Notes to editors:
About Norwich Union
- Norwich Union is the UK's largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
- Norwich Union's news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media.