Insurers eye CPPI structures for next generation of savings products
Insurers are investigating a new breed of fund mechanism – the ICPPI – which allows them to offer individualised guarantees on their products more cheaply and flexibly than other types of funds. But it is not without its costs. Louie Woodall reports
The current economic landscape is demanding a new range of financial products to cater for a more cautious brand of investor. Customers want guaranteed products that offer the potential of upside participation, but without the restrictions on protection levels and fund choice that characterise UK with-profits or old-style variable annuity (VA) products.
Insurers, meanwhile, need to offer long-term savings policies with attractive growth rates that can compete against the investment vehicles
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