Norwich Union also believes the equity release market needs more high-street providers and a wider range of products if it is to continue growing.
Daren Carter, director of sales and marketing at Norwich Union Personal Finance, said: “A Social Market Foundation report into the equity release market [commissioned by Norwich Union] said that if the market is to grow, consumers need to be more aware of equity release and big name brands need to enter the market bringing a wider range of products and increased competition.
“Consumer confidence in equity release products will increase demand and encourage high street banks and building societies to enter the market. This will bring greater product innovation and competition to the consumers’ benefit.
“As the equity release market grows, more people will realise that it is one of the tools that can be used to fund retirement.”
Norwich Union continued to lead the equity release market with sales in the first half of the year of £165 million, slightly lower than last year (2005: £179 million), as the market remained subdued.
The launch of Cash Reserve option in July means that Norwich Union is one of the few providers to compete in all areas of the equity release market, including the growing drawdown sector which accounted for 35 per cent of sales in the Intermediary sector during Q2 2006.
