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The insurer, which offers four equity release mortgages, predicted the value of the market would increase from £1.2bn to £2.4bn by the end of 2013.

Anthony Rafferty, head of retirement for Norwich Union's post retirement business, said advisers, who currently account for 40 per cent of sales of its equity release deals, would make up a rising part of the products distribution as they seek to diversify during and after the financial crisis.

Mr Rafferty said: "Even now we are seeing new advisers coming into the market."

He said more providers would also start offering equity release and he expected high street banks and building societies to enter the market in the near future selling both direct to customers or in partnership with established providers.

Simon Little, business development director of Bedford-based IFA Home and Capital, said the sector was set to soar in the near future.

He said: "We are already seeing it, especially as the credit crunch has focused a lot of people's minds on debt repayment.

"About 50 per cent of the equity business we do month-on-month is now to help customers repay debts, and any claim that interest in equity release is going to grow, I completely agree with."

Norwich Union's findings came as Safe Home Income Plans, the equity release providers' trade body, called on Trading Standards to investigate certain sale and rent back companies' advertising.

Andrea Rozario, director general of Ship, said some businesses make "misleading" accusations against the safety of equity release products while downplaying the risk of sale and rent back deals.

She said: "It is important, now more than ever, that this sector is forced to offer clear factual information, and penalised if they do not."