Life insurance ISA sales have had a slow start with the number of policies sold less than a 10th of ...
Life insurance ISA sales have had a slow start with the number of policies sold less than a 10th of the figure for equity-based ISAs
Around 45,000 insurance ISAs, with premiums worth £32m, were sold during the second quarter of 1999
This compares with sales of 458,000 equity ISAs worth £1.5bn in contributions, according to ABI figures. The ABI figures showed that just over half a million ISAs were sold during the same three months with premiums worth almost £1.6bn
Iain Wylie, special projects manager at Norwich Union, said: "Insurance ISAs have been slow to get off the ground. Since it is a new investment vehicle it will take time for people to become familiar with the attractions of the ISA
Insurance ISAs were proving the less popular of the three, and he added: "Since they are new savings vehicles it is not surprising that they have been slow to take off. The future of the ISA market looks good. They are going to be a savings vehicle which will grow in attraction
Russ Brady, communications manager at Co-operative Insurance Society, commented: "ISAs remain under-promoted and tend to get a bad name. But they do have their benefits they can work and we believe that they will
Overall, the ABI reported new life insurance and savings business rose 18% during the second quarter
New individual business worth £10.3bn was transacted with 2.2 million new policies sold; an increase of 10
Mary Francis, director general of the ABI, said: "The introduction of the new individual savings account has helped to encourage more new business for insurers
"There have been good levels of sales for all three of the elements cash, insurance and equities
