Pricing out the healthy

Research by Xafinity has revealed 60% of annuity providers and industry experts believe healthy lives are being disadvantaged as personal underwriting of annuities becomes every-day practice. After all, the benefits of cross-subsidy across a wide population base will disappear, meaning premiums could soar for those in good health. But the shift to personalised underwriting is surely a positive step for the annuity market. But what could the unintended consequences be? So how do enhanced lives price out the healthy? Vince Smith Hughes, head of business development at Prudential explain...