Avalon
EXPAT MARKET FUELS EXPANSION FOR FUNERAL PLAN PROVIDER spain
A UK-based provider of funeral plans is expanding into Turkey due to the growing number of British expatriates in Europe.
Avalon, which is located in Wilmslow, Cheshire, has already opened 2 offices in Spain & Cyprus to service demand from retired British nationals taking out financial plans to cover repatriation and funeral costs.
The company has now signed up with Barclays Bank - and its international business management team in Manchester - to further expand its new trading division, Avalon Europe, on the Continent.
Set up by ex-Norwich Union manager Mike Cooper in 1994, Avalon arranges plans to help people pay for funeral expenses based on fixed costs by either lump sum in advance or monthly instalments.
Since its inception, the company has already gained a significant share of the market with customers across the UK and in Europe. It now employs 70 people, including 40 customer service managers working across Europe, and handles over 100,000 enquiries each year.
As well as its European expansion, the company is also planning to open an office in the south of England. The strategy is expected to help Avalon create up to 30 new jobs and double the group's total annual premium turnover from 15m to 26m by the end of 2008.
The expansion of its UK division also being fuelled by a growing number of Metropolitan Borough Councils taking out plans to cover the funeral costs of elderly people in their care.
Under current legislation, the person tasked with arranging an individual's funeral is responsible for meeting the costs. When the individual has no immediate family, this is often the responsibility of the care worker.
Councils are therefore being recommended to put preventative measures in place to cover their liabilities in this eventuality.
All fees paid by the scheme's individual and corporate members are deposited in an independent trust fund know as Avalon Funeral Trust, which is held with Barclays. Funeral expenses are then eventually paid to the nominated funeral director.
The trust has an investment manager, Close Brothers Merchant Bank, which is tasked with ensuring the fund grows sufficiently to cover the liabilities of future funeral costs.
Mike Cooper, managing director of Avalon, said: "The idea of personal funeral plans first became popular in the US during the eighties.
"We identified a need here in the UK for professional, well-managed plans and developed the concept with our partners over several years before launching in 1994. The popularity of the service has surpassed our expectations, especially in the expatriate market where our dual certification feature means funeral services can be carried out in either country.
"As we've grown, so have our banking requirements and the time was right to consider our options. Barclays quickly understood our business and our requirements. They also have a strong reputation for providing international expertise and that was a key focus for Avalon as we concentrate on our European expansion.
"The bank is now helping us to implement that strategy and provide facilities to ensure monies are collected and deposited into the trust as efficiently as possible."
With 20,000 Britons relocating to Spain each year alone, the popularity of funeral plans from an independent, UK provider is increasing rapidly.
"Funeral planning requires a great deal of sensitivity - Avalon provides a professional and customer-focused service to ensure the highest standards are met. Avalon have a strong management and financial expertise to help the company succeed in both the UK and overseas. We're delighted to be helping them achieve their objectives."
Press Information: Manchester.