ABI reports steady long-term savings growth

Sales of life and pensions products increased by nearly 13 per cent in the second quarter of 2005, compared to the same period of last year, the Association of British Insurers (ABI) announced today.

New life and pensions business amounted to nearly £3 billion over the past three months, representing a 7.3 per cent rise on the previous quarter.

Commenting on the new figures, Chris Kenny, the ABI’s director of life and pensions, said: "It is good news for savers and the insurance industry that overall savings figures are up. But we must not be complacent.

"The stakeholder range of savings products has so far failed to make any appreciable impact, and there is much still to be done in order to make the stakeholder concept work."

Mr Kenny also called on the government and the Financial Services Authority (FSA) to ensure pensions "achieve the role originally envisaged for them".