According to the Confederation of British Industry, consumer confidence for financial products is rising, resulting in increased levels of business.
The last analysis by the Confederation was done in March and to compile their statistics they contact insurance companies, fund managers, banks, building societies and general insurers. The results showed that more business had been received across the board. However, the greatest confidence was amongst life insurance companies, rather than general insurers and building societies.
Many people see the returning confidence as a result in the FTSE 100, which fell below 3,500 in March. By 6 May the index had risen above 4,000.
Our View
Confidence in financial products has taken a huge hit over the past three years, culminating at a low point in March this year. However, the stock market is making a slow recovery and this can only increase confidence.
Consumers will generally have seen the values of policies increase lately and this may be encouraging more investment. The buy low, sell high cycle may be starting again.