Nearly half of Child Trust Funds provided by mutual insurers

Mutual insurers now provide 47% of all the Child Trust Fund (CTF) accounts opened in the UK, according to figures from the Association of Mutual Insurers (AMI).

The announcement comes at the beginning of the first ever Child Trust Fund Week which runs from 15 -20 January and coincides with government figures released stating that, by the end of December 2006, a total of 2.48million Child Trust Fund Accounts have been opened since the scheme was introduced in April 2005.

Just ten mutual insurers including Scottish Friendly, Liverpool Victoria, Family Investments and The Chilldren’s Mutual are providing the 47% of Child Trust Fund products currently open. These mutuals are working with around sixty high-street distributors to provide them with products; amongst them are retailers such as Boots the Chemist, The Early Learning Centre and ASDA and financial organisations including Barclays Bank and Yorkshire Building Society.

With financial inclusion high on the government’s agenda, the figures demonstrate how well positioned the mutual sector continues to be in providing financial service products that must reach all areas of modern society.

Shaun Tarbuck, Chief Executive of The Association of Mutual Insurers comments, “The unique values of the mutual model mean that we are able to bring the elements of long-termism and inclusion to financial services within the modern society, building on the trust and security prevalent in the mutual sector. We believe there is also a strong element of parents choosing to place their child’s funds with organisations whose sole motivator is not to make a profit for shareholders but to perform well for current members and for future generations.”