Despite dismal market conditions last year, new business sales of life, pension and collective inves...
Despite dismal market conditions last year, new business sales of life, pension and collective investment products are up by 1% in 2002, from £11bn to £11.1bn, according to sales figures of last year released from the ABI yesterday.
The ABI's sales figures for 2002 show that the IFA channel is still the most popular means of accessing individual regular premium life and pensions business, bringing in 62.2% of business during the year and just under £2.3bn premiums.
Growth remains steady in the direct marketing channel, although it represents a significantly higher proportion of regular premium life business, at 10.9%, than it does pensions, at 1.9%.
Sales of regular premium life insurance products grew by 9.5% in 2002, having dipped temporarily in 2001, representing £1.3bn worth of new premium.
Sales of single premium pensions has surged by 29% to £11.3 bn in 2002 from £8.8bn in 2001.
An ABI spokesperson, Emma Grainge, attributed the significant increase in single premium pensions sales to transfer business from final salary occupational schemes to stakeholder schemes.
Falling interest rates and increasing mortgage borrowing have both contributed to the rise by 27.5% in mortgage related term insurance policies last year. Sales grew from 925,000 new contracts in 2001 to 1.2m new contracts the following year.
The ABI has also publishing its latest data on stakeholder sales since the product was launched in April 2001, confirming doubts of the success of the scheme. Up to the end of 2002, 1.25m stakeholder pensions were sold with 340,688 companies designating a scheme.
Woods said, "Sales of stakeholder pensions are now running at 33,000 a month, less than half their peak of 75,000. The vast majority of employer-designated schemes remain empty boxes, without a single member."
The ABI says that market analysis published in November shows that 90% of employer-designated schemes have no members. There are empty boxes and only 9% of employers are making contributions to stakeholder pension schemes on behalf of their employees.
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