Mr. Stephen Rance:

Regulatory control comes into play here as well. If we take an example that we had with the NewBuy scheme in the United Kingdom, we currently see very good lending practices. Lenders are risk averse and we look to ensure those practices in the policy underwriting at that point in time. Actually, one is controlling and containing that aspect.

As the market improves, of course the danger is that lenders look to move outside those lending criteria into looser areas and it is important that both the insurer, and, perhaps, the regulatory control that sits around the scheme, enshrines good practice lending in the difficult times for when things get better.