By Robyn Hall The Stalwart group and GE Financial Assurance are to offer a combined equity release a...
By Robyn Hall
The Stalwart group and GE Financial Assurance are to offer a combined equity release and long term care product when the two companies merge to create GE Life in the autumn
The venture will be the latest product move in a market which is yet to take off in the UK, with the industry still waiting for a formal Government response to this year's Royal Commission report on long term care
Cathy Horsley, marketing manager at Stalwart, said: "GE Life will continue to operate in the markets which Stalwart is involved in, such as equity release and focusing on the over 50s. Obviously long term care is an extension of that
Horsley also indicated that long term care and home equity release products would be integrated. She said: "It sounds logical really. You can draw your own conclusions. Home equity release is our area of expertise
GE Insurance Holdings, of which the Stalwart group and GE Financial Assurance are subsidiaries, is part of US firm GE Capital, which is part of General Electric Company, the second largest firm in the world. GE Insurance Holdings announced in January this year that it was combining the operations of its life offices Stalwart and GE Financial Assurance
David Evans, managing director of GE Financial Assurance and the Stalwart group will head GE Life as managing director. Evans previously worked at Scottish Amicable where he was focused on marketing long term care products
Clive Cowdrey, chief executive of GE Insurance Holdings, said: "Product plans will be confirmed at the launch of GE Life and not before. Both businesses are already focused on the needs of the over 50s they need to plan for LTC and in many cases there will be some sort of equity release plan
"Long term care is a strategic growth area but it is in need of a different product approach, one that is innovative and based on something that is sellable in large volumes. GE Life will be looking at ways to expand the market, simply because a share of the existing market would not constitute big business
Other players in the LTC market welcomed the impending arrival of GE Life
Roger Edwards, product marketing manager at Scottish Provident, said: "The market is in need of stimulation so any new entrant into the market has got to be good news even if they do come in with all guns blazing. Key to the success of long term care is education. It will be interesting to see how they make their mark on the market
Paul Bennett, PPP lifetime care PR and advertising manager, said: "Any new entrant into the market is a positive move as it will raise awareness which has got to be a good thing for us
Sandy Johnstone, long term care strategy manager at CGU Life, added: "The more, the merrier. The more insurers committed to long term care, the more likely IFAs will recognise that this is a market to take seriously
