Slow start for insurance ISAs

By THIS IS MONEY
Updated:

 

Insurance companies have sold 45,000 insurance ISAs (Individual Savings Accounts) in the three months since they were introduced at the beginning of April, according to figures from the Association of British Insurers (ABI).

'This is a positive start and demonstrates the appeal of the insurance component. The £1,000 annual limit should be raised as soon as possible to encourage more providers to offer it, and to meet the demand that these figures have demonstrated exists,' said Mary Francis, ABI's director general.

ABI figures reveal that 37,000 regular premium and 8,000 single premium Insurance ISAs were sold, with new premiums at £22 million and £10 million respectively.

Insurance ISAs make up 10% of the total number of ISAs (cash, insurance and equity) sold by all insurance companies.

Mary Frances noted that: 'Some have suggested that the insurance component is an unnecessary and unwelcome complication. These figures contradict that view.'

Around one million share and unit trust ISAs and about two million cash ISAs have been taken out over the same period.

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