Service providers, intermediaries, consumer groups and charities were polled at a recent seminar held by SHIP and Eversheds on the way ahead for the industry. The results show that they believe the government has a greater role to play in raising awareness of the concept as a viable, realistic tool for financing retirement.
Advisers were also singled out in the research as being instrumental in delivering the product successfully over the years ahead, with 87% of respondents indicating advisers have a greater role to play in outlining the benefits to customers.
Furthermore, the findings also reveal the impact that consumer distrust of financial institutions has had on the industry over the past six months, with 66% agreeing this has had an adverse effect.
On the issue of innovation in the sector, opinions were more divided, with 61% of attendees indicating they think there will be increased innovation as a result of the financial crisis.
Commenting on the findings, Andrea Rozario, director general of SHIP, said:
“This research highlights the incredibly important role that advisers must play in driving the growth of the equity release industry. Recent developments in adviser training and regulation have laid the foundations for a set of advisers who are able to fully communicate the benefits and suitability of equity release to their customers. The debate also recognised the need for financial intermediaries without equity release qualifications to refer on suitable customers to an adviser with the necessary experience.
“Ultimately, given the current economic climate and the launch of our White Paper this summer, which will set the agenda for the industry going forward, 2009 promises to be both an exciting and pivotal year for equity release.”
Kathryn Roberts, partner and equity release expert at Eversheds international law firm, added: “The results of the survey are indeed encouraging as they indicate broad consensus, both on the way forward for the industry and its relevance in this unprecedented economic climate. Contrary to some views that have questioned the future viability of the industry, these findings, coupled with the sector’s latest set of financial results, confirm that it is highly resilient and will have an increasingly important role to play in providing alternative retirement financing solutions amid the current downturn and beyond.”
