January 2008

SHIP! SHIP! Hurrah!

Tell us about your career to date:

I started out as a mortgage adviser for a large estate agent in the North back in 1993. After several years I decided I wanted to broaden my horizons and take a different path. I went back to university to study for a business degree and after graduation I worked in the mobile phone industry as a marketing manager.

I moved down South just over five years ago and set up a business with my husband within the mobile phone industry, however the pull of financial services was too strong to resist and I set up a business in 2004 dealing with mainstream mortgages and general insurance. As I began to find out more about equity release the more interested I became and I decided to specialise in 2005.

My experiences mean I feel passionate about equity release and the customers. I felt very frustrated by the misrepresentation of the products and benefits of equity release by the media and those who spoke negatively about the industry. I strongly believe that customers need to know the whole picture so they can make an informed decision.

What are your plans for SHIP going forward?

SHIP has already achieved a lot of recognition with the general public and has instilled a measure of confidence, which has been essential to the growth of the industry. This is down to the hard work and determination of people like outgoing chief executive Jon King and non-executive chairman Laurie Edmans who have dedicated their time to ensure not only the safety of the products but also their widespread recognition.

This confidence and commitment from the members of SHIP in connection with equity release is an ideal place to start. What's now needed is to further increase the confidence of the general public and advisers alike. Education and explanation about the different types of products and how they can help appropriate customers is essential.

Advisers need to understand just how equity release can fit into the changing needs of their customers and customers need to feel secure. We need to impress upon the media just how different the products of today are and the safeguards that are now in place.

How have you seen the role of SHIP developing over the years?

SHIP first came about in 1991 and is dedicated entirely to the protection of customers and the promotion of safe schemes.

That dedication has not changed. The commitment from the members to abide by the promises laid down by SHIP has helped to grow the industry. Among these promises the no negative equity guarantee, the ability to move without being penalised, the SHIP certificate and independent legal advice for the customer are all important aspects which have helped to build confidence in the market.

The widespread recognition of SHIP, which has built up over the years, has enabled intermediaries to advise on these products with confidence, and has given the general public peace of mind. More recently the push for specific adviser qualifications and a checklist for both customers and advisers has helped to raise the bar even further.

What do you think will be your biggest challenge as director general of SHIP?

There are going to be many challenges but the biggest is likely to be education. There is still an outdated and misinformed view of equity release within certain areas. Advisers, the media and customers etc need to understand exactly how the products work and where they may fit into retirement planning. Customers need to be able to make informed decisions and this is not possible unless they get access to all the information.

We need to draw clear lines between regulated safe products and unregulated potentially dangerous products such as buy and rent/leaseback schemes. The wider audience and press etc need to appreciate how different equity release is today. There is no other product that has such an immediate positive impact on the quality of people's lives and to scandalise the industry and feed the fears of vulnerable people is a disgrace.

How have you seen the perception of equity release develop over time? What are the current misconceptions and what can be done to combat them?

Perceptions are changing, the baby boomers have a very different attitude and they have grown up with debt. They are far less inclined to think that leaving an inheritance is their main priority and they are living longer more active lives, which need funding. On top of this the safeguards and flexibility of products have enabled people to feel that equity release is a very good option for them. This is leading to more confidence from consumers and advisers.

What role do you think equity release should play in retirement planning today?

Planning among other things is about options and priorities. By leaving equity release out of the advice process clients are not fully informed. There are many occasions when a client cannot or does not want to move home to release equity; they may need to pay for care in the home or wish to retire early due to all sorts of reasons. The point is that clients need to be fully armed with all the options, aware of how a decision will impact on their lives both now and in the future.

Andrea Rozario
Director General
Safe Home Income Plans (SHIP)