Norwich Union is looking at plans to enter the structured product market by the summer, with the lau...
Norwich Union is looking at plans to enter the structured product market by the summer, with the launch of its own protected Isa.
Although little detail is given at this stage about the actual details of the protection element carried on the product, NU says the protected Isa will be a five-year tranche-based Isa which fits into their the mini or maxi Isa options and offers either reinvestment or a fixed income which is paid monthly.
Willie Mowatt, director of product development at Norwich Union, says it is entering the market worth £7bn each year because the concept of protected or guaranteed products fits the risk requirements of their main customer base and around one-quarter of all structured product money goes into Isas or their equivalent.
"We believe consumers are looking for this type of product, as it addresses many of their fears about investments in the current climate," says Mowatt.
We are looking at launching a transparent, market-leading product, with the aim of offering realistic but very competitive returns substantially above current retail interest rates.
"We've looked at modelling the product features of the Protected ISA on our Prosper Income Bond, in order to benefit from the understanding that the Prosper Income Bond has built up in the marketplace," adds Mowatt.
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