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Only 15 per cent of British consumers would consider investing in an offshore bond, according to the latest research from The Hartford.

Conducted among 2413 adults, the three main reasons cited for not investing were a lack of knowledge on the product, a belief that the consumer had insufficient funds to invest and concerns about investment risk.

Andy Marks, managing director of sales for The Hartford UK, said: "The primary reason why the respondents to our survey do not consider investing in an offshore bond is simply that they do not know enough about them – highlighting the need for financial advisers to educate further their clients about offshore bonds, the advantages they can offer and the actual risks associated with these products.

"With the addition of a guarantee, the risks would be reduced further, making offshore bonds accessible to a wider customer base."

The reasons for not wanting an offshore bond. Source:YouGov on behalf of The Hartford.

The survey conducted by YouGov showed that the number of people who would consider such an investment more than doubles to 34 per cent if the offshore bond guarantees income and the ability to pass on wealth to dependants.

For those aged 55-plus, the demand for an offshore bond with a guarantee increases nearly threefold from 11 per cent for a standard offshore bond to 30 per cent for one with a guarantee.

Mr Marks said: "At The Hartford, we are seeing a significant demand for our onshore bond and pension products that guarantee income for life, particularly in the current volatile equity markets. The results of this survey highlight that there is a substantial demand from consumers for an offshore bond product with a guarantee, underlining an attractive potential gap in the market for product providers."

Christopher Wickes, an IFA for Alexander Beard, said: "Most British consumers do not have a clue about personal finance. Offshore bonds only come their way when they are recommended by an IFA. The real reason they have not come by offshore bonds is because a lot of IFAs do not understand them.

"Offshore bonds are useful in specific scenarios. It gives you access to wide range of investments held in wrap of an offshore insurance contract. Life assurance policy is issued by the Isle of Man, Dublin, Luxemburg or the Channel Islands arm of one of the UK insurance companies. Because it is issued outside the UK there is no tax charged on the fund itself in those jurisdictions."