About 60% of consumers receive ‘standard' annuity rates – with no uplift because of health issues - but the figure should be more like 20% to 30%. Andrew Gething looks at the annuity underwriting process in light of Consumer Duty...
Pension annuities have been in the doldrums for many years but are now on the increase. This is due to improved rates and, with changes to pension taxation, they are arguably likely to increase further. Annuity providers turned their attention to bulk annuity contracts with defined benefit pension schemes and this market continues to grow. However, little has changed over the last ten years in terms of retail consumer products and processes. Annuities and Consumer Duty We ask: what needs to change in light of Consumer Duty? Reinsurers tell us that about 60% of consumers receive ...
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