As the pension risk transfer market evolves and grows increasingly competitive, member experience has become a defining factor for trustees when selecting insurers for buy-in and buy-out transactions, according to pensions and financial services consultancy Hymans Robertson.
The firm noted that pension schemes which prioritise member experience early in their buy-in and buy-out journey are more likely to ensure a smooth transition and maintain a high quality of service.
Hymans Robertson urged trustees to carry out thorough due diligence on insurers’ administrative capabilities to understand what the member experience will look like throughout the retirement journey. This should be done both when selecting an insurer for a buy-in and as a scheme approaches buy-out.
Insurers have long placed members at the forefront and are bound by consumer duty. However, with an increasing number of deferred members requiring ongoing support, insurers are investing heavily in what they offer beyond standard administration. Innovations include enhanced communications, educational resources, online functionality, and support for complex benefit options—improvements designed not only to meet regulatory requirements but also to stand out in a competitive market.
Donna Prince, Head of Member Experience, Hymans Robertson, said, “We’re seeing trustees place member experience at the heart of their endgame strategy. Schemes in strong funding positions are now looking beyond price, focusing on how insurers can deliver a seamless transition and maintain a high quality of service. By engaging insurers early and focusing on what matters most to members, schemes can ensure a smooth transition from buy-in to buy-out, with minimal disruption for members.
“Our recent work with trustees has shown that tailoring the broking process to reflect member priorities, such as maintaining access to online services and ensuring continuity in communications, gives trustees confidence in their insurer selection and sets clear expectations for the future.”
Lara Desay, Head of Risk Transfer, Hymans Robertson, added, “Trustees need to consider member experience and insurer administration capabilities early in their endgame planning. Once a buy-in is enacted, it’s an irreversible decision. They need to be comfortable that they’re partnering with an insurer with a focus on enhancing administration and member experience. By doing so, trustees not only secure member benefits in full, but ensure their members are in safe hands and will receive the same good service that they have strived to provide themselves. They also need to be confident that their chosen insurer is committed to delivering excellent service and support for members, both now and in the future.”
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