JLT Employee Benefits rolls out buyout comparison service

JLT Employee Benefits rolls out buyout comparison service

JLT Employee Benefits has launched a new buyout comparison service and monitoring tool that allows companies and trustees to receive regular bulk annuity quotations from insurers in the marketplace.

The serviced launched with eight pension schemes already fully enrolled, with initial quotations expected imminently.

Trustee and company appetite to insure and ultimately settle costly legacy pension liabilities via bulk annuity transactions is on the rise, according to JLT.

JLT has created a service that enables schemes to be ‘in the market’, proactively monitoring insurers’ quotes in order to spot the best pricing, given that volatility in bulk annuity prices remains a permanent feature

Schemes using JLT’s buyout comparison service will receive actual quotations, rather than proxy buyout prices, on a regular basis, allowing them to expedite the process towards locking into a bulk annuity contract.

Companies and trustees can also use JLT’s new service to self-load anonymised member data to a secure online portal, which can then be shared with all insurers currently active in the bulk annuity marketplace in one streamlined data file.

Removal of each scheme’s highly bespoke benefit specification, in particular, speeds up both data compilation and the pricing process, according to JLT.

Harry Harper, director and head of buyouts at JLT, commented: “A key limiting factor for the parties involved in the bulk annuity market to date has been insurer man-power and bulk annuity adviser time-cost. With more schemes coming to market, the existing model was becoming inefficient, giving rise to a situation where schemes received less quotes, paid higher prices and could not update quotations regularly, to the detriment of all market participants.”

“By allowing schemes to access regular ‘real’ pricing, companies and trustees using our service will be able to spot when insurer pricing has improved and can transact immediately to capture the pricing opportunity. For our clients, improved automation means better information, more quotations and less chance of missing opportunities.”

“Allowing any UK scheme to self-load their own data and receive prices is fundamental and illustrates the scale of ambition for the new system.”

About Author