Anders Larsson: There might be room for one more Equity Release player in Sweden
Anders Larsson, CEO of Svensk Hypotekspension AB in Sweden, shares his perspective on the development of the Swedish equity release market in the light of increasing knowledge and recognition of the product.
How would you describe the current market for equity release in Sweden?
The market is steadily growing mainly due to the fact that the recognition of equity release (ER) has increased dramatically over the last years as a result of heavy marketing. The entry of a second ER player will also help increase the demand for ER, as well as the steady increase in house prices.
What has been the impact of COVID-19 on the sales process, noting that Sweden has taken a different approach to dealing with the pandemic as compared to many other European countries?
There has been very little impact on the sales process, except for the personal meetings with customers. We have no problem running the business with the sales personnel working partly from home.
What importance do you attribute to putting in standards to protect consumers, in Sweden and across Europe?
The existing standards are very important. I’m not sure that further standards are needed.
What opportunities do you see for new funders and investors to enter the Swedish market, and the European market more broadly?
For Sweden I think there might be room for one more ER player.
How do you assess prospects for growth in the equity release market in Sweden for the year to come?
I anticipate there will be continuous marketing in four main channels: TV, direct mail, digital and newspaper print ads. The increasing knowledge of ER will also generate more and more sales following recommendations from friends. And again, the growth potential comes down to house price development.