An ABI report says the vast majority of UK insurance chief executives believe that a price-capped Sandler suite of products will make no impact or very little impact on closing the savings gap.
Ninety-one per cent of the 76 chief executive responding to the survey last week said they were not convinced that the proposed products will have an effect on the market.
Seventy-seven per cent said additional tax incentives for employers who contribute to their employee's pension scheme was the best way to tackle Britain's lack of saving.
The ABI released the wide-ranging survey of life office chief executives to coincide with its first annual conference in London last week.
The research also found that while 72 per cent of insurance chief executives said they were very worried by the weight of regulation, two-thirds said they view business prospects over the next five years as positive or very positive.
Over the shorter term, general insurers are more positive than their life counterparts, with 70 per cent compared with 19 per cent expressing a more positive outlook.
Fifty-two per cent of executives thought their UK equity holdings would be the same in five years time as they are now despite the recent trend of insurers selling equities in the face of falling markets.
ABI head of life & pensions Alan Woods says: “ABI research has demonstrated that price caps will inevitably exclude some people, restricting the impact that Sandler's products will have on the savings gap. The CEO research confirms this.”
Scottish Widows head of marketing, technical Ian Naismith says: “The chief executives are saying that if you have a price cap, you will not be able to distribute the products effectively, which means that nothing will be accomplished in terms of tackling the price cap.”