The latest Association of British Insurers' Populus Savings Panel survey of senior UK insurance industry executives has revealed that the industry has seen an improvement in the climate for savings over the last six months. Despite this, there is continuing concern that economic and fiscal policies are deterring UK consumers from saving.

<p>The December 2006 survey showed that 48% of the panel believe that the savings environment in Britain has improved. In addition, 63% are optimistic for the industry as a whole over the coming year. This is an improvement on the July 2006 survey, where only 42% thought that conditions had improved.<br /><br />Despite this, the panel of around 150 senior executives from the Association of British Insurers (ABI) member life insurance companies listed a number of obstacles to further improvements. While 40% now see interest rates as having a net positive impact on the personal savings market, 37% believe that government policy initiatives are having a negative impact on the saving climate.<br /><br />In addition, while 60% of the panel believe that recent ISA reforms will enhance savings for UK consumers, a staggering 89% think that the overall savings limit on ISAs should be increased.<br /><br />Debt also remained a key concern, with 86% believing that debt levels have a negative impact on UK consumers&#0039; ability to save for the future. Personal taxation is also cited as having a worsening net negative impact on saving.<br /><br />Stephen Haddrill, director general of ABI, said: Reforms to the pensions and savings system, including the recent ISA changes, present good opportunities for savers in 2007. But at the same time, other policies are seen to be damaging levels of long-term saving. We need to see a consistent commitment to boost saving across all policy areas.</p>