HSBC will refer customers to market research from The Annuity Bureau in a deal directed at providing greater access to the open market option for the bank's customers.
The Bureau will also provide specialist advice, to be used by HSBC’s roughly 2,000 ‘financial planning managers’.
Both parties cite ABI predictions the annuities market will hit £18bn by 2012 up from about £7.4bn today as the baby-boomer generation retires.
Andrew Kelly, business development manager at The Annuity Bureau, says: "Large organisations such as HSBC have positioned themselves to capitalize on the huge business opportunities in the over-55 marketplace. Where market expertise, bespoke administration systems and processes do not exist internally, it is only natural to outsource to a specialist.”
The Bureau already provides services to life offices, insurers, IFAs and UK pension schemes.
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