Legal & General will use customer postcodes as an additional risk factor when quoting for a conventional non-profit annuity.
From today, customers may receive an increased annuity rate above Legal & General’s standard rate, depending on where they live. The decision follows a successful pilot study with Hargreaves Lansdown, which started in August. Legal & General says the pilot study shows postcode pricing will result in a significant number of customers benefiting from an increased income in retirement. Customers who do not qualify for an increased rate can still receive the standard annuity rate. Simon Gadd, managing director of Legal & General’s annuities business, says: “Using other indicators rathe...
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