William Burrows: Will the new annuity comparator benefit your clients

In effect from 1 March 2018

clock • 4 min read

The new annuity comparator is supposed to make it easier to shop around for the best annuity but some commentators have also picked up on shortcomings. William Burrows takes a closer look at the pros and cons

From 1 March 2018, every firm issuing guaranteed annuity quotes must comply with new rules set out in the Financial Conduct Authority's policy statement PS17/12. In simple terms, firms will need to ask customers for their consent to use personal information in order to produce an annuity comparator. The annuity comparator is simply a new type of annuity illustration that informs the customer if there is another company in the market offering a higher rate. If, for example, Company A offers an annuity paying £2,500 a year but Company B offers £2,600, the customer must be told there is ano...

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