Traded Endowment Policy specialist Neville James says its customers are receiving 20 per cent more than the surrender value on traded policies.
The Tep specialist says it paid on average £1,980 more than the surrender value on policies traded during June, compared to the industry average of £1,500.
Neville James marketing manager Helen Langton says: "This has been an unusual month, in so far as we have seen an exceptionally high number of large policies. In one case we paid £7,650 above the surrender value.
"Demand from investors for Teps has significantly increased and market makers such as Neville James are being increasingly competitive in their pricing."