HC Deb 19 July 2000 vol 354 cc183-4W
Dr. Cable

To ask the Chancellor of the Exchequer (1) how many, and what percentage of, 25 year endowment contracts(a) with profits and (b) unit linked purchased (i) one year ago, (ii) five years ago, (iii) 10 years ago, (iv) 15 years ago and (v) 20 years ago are still in force today; [129952]

(2) what research has been conducted in the last 10 years by (a) the Treasury and (b) the Financial Services Authority and its antecedent bodies, into long-term persistency rates on endowments, particularly linked to mortgages; and if he will publish figures for overall persistency for that period. [129953]

Miss Melanie Johnson

The Personal Investment Authority collects and publishes information on the persistency of endowment contracts, but only for terms of up to four years after the contract is effected. The latest figures were published in October 1999 in the Personal Investment Authority's "Fifth Survey Of The Persistency of Life And Pensions Policies", a copy of which has been placed in the House of Commons Library. Persistency data are collected on endowments generically without distinguishing endowments used to repay mortgages from endowments used for savings purposes and without distinguishing with-profits endowments from unit linked endowments. There has been no specific research commissioned into the persistency of mortgage endowments.