Equity Release Services, the UK's first equity-release outsourcing company, claims it can offer savings of up to £1.75m for providers looking to enter the market.
ERS, which launched last week, says it can reduce the average time it takes providers to enter the market from two years to six months.
Its outsourcing system, designed by CGI Group (Europe), is aimed at life insurers with an ageing client bank, financial services companies with lack of experience in the equity-release market, charities focused on older customers, offshore companies looking to enter the UK market and retail operations with a number of older customers.
ERS says it can provide these organisations with a fully compliant lifetime mortgage or home-reversion operation and white-labelled equity-release services for £250,000. It believes the cost if a provider developed an equivalent system itself would be more than £2m.
Chief executive Ged Hosty says: “Equity release is one of the fastest growing consumer markets in the UK. It is currently valued at £1.1bn but we expect growth of 50 per cent over the next two years.
“Numerous organisations are looking to enter the market but many have no financial services experience. By outsourcing their equity-release business to ERS, companies can enter the market in a quarter of the time and at just 12.5 per cent of the cost.”