TEPs show growth

Mary Heaney reports

Research by the Association of Policy Market Makers among its members shows that the market in Traded Endowment Policies (TEPs) has grown by 15 per cent in the past year. However, the chair of the association Tony Vincent estimates that around £600 million of tradeable policies are still surrendered direct to life offices each year as the holders of these policies do not know the market exists. He said: "As the average value of a policy in the market is £8,000, this means that some 75,000 people a year are getting less for their policy than they might otherwise achieve; this loss averages out at 14 per cent."