Co-operative Insurance Services, along with Scottish Friendly Assurance and AXA SunLife, have seen a dramatic increase in the sales of insurance ISAs over the last few months. The prime reason for this appears to be that investors are clearly looking to secure a decent return whilst minimising risk.
Overall, increased business levels can be attributed to the caution investors have over the stock market. CIS have reported that its single premium insurance ISA business increased by 50% in the first six months of this year to £12 million, compared with the same period last year. Likewise, AXA SunLife said that it had also seen almost double the amount of insurance ISA business written this year compared to 2001.
Other providers of insurance ISAs include Pearl Assurance and small providers such as Nottingham Friendly Society and Druids Sheffield Friendly Society. It is likely that providers will continue to call for the insurance ISA investment limit of £1,000 to be increased ideally to £3,000 to match the investment limit for mini shares ISAs, or £7,000 for investment in a Maxi ISA.