The company believes it is as a result of the Financial Services Authority (FSA) ruling PS106, which came into effect on September 1st, ensuring policyholders seeking information on surrendering an endowment policy are advised by their life company of the option to sell it.
Prior to September, a life company was under no obligation to inform policyholders of the existence of the TEP market, even though they may get more for their policy by selling it via the TEP market.
Commenting on the figures, Matthew Roche, marketing manager at Surrenda-link said: “The total market for traded endowment policies is worth an estimated £1 billion a year. Last year, approximately £500 million worth of policies were sold via the TEP market, which means that 50% of those selling their policies still missed out by surrendering and not selling.”
