Aegon Scottish Equitable has increased the guaranteed rate period from 14 to 21 days on all its annuity quotes.
The firm says should the rate increase the new higher rate will automatically apply but, if it drops, the rate will remain guaranteed for three weeks from the date of the reduction.
Annuity business at Aegon Scottish Equitable is already up 13% to £342m this year and the firm hopes the new rate guarantee will boost it further.
Mark Cardy, head of annuity sales, says: “Our distributors have told us that one of their biggest frustrations in dealing with a client’s annuity is the time and effort it takes to re-quote to keep the rate current whilst waiting for the case to complete.
“We believe a longer rate guarantee period reduces the requirement for numerous re-quotes, saving advisers and clients valuable time and money.
“Working with our distributors and improving our annuity proposition will enable us to maintain our market leading position.”
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