Research conducted by iPipeline with leading annuity provider Canada Life Limited, suggests that advisers consider the service they receive from providers in their recommendation decisions as one of the most important factors, second only to the rate available.
The survey, completed by more than 400 advisers (in Q1 2013) highlights the importance for providers to offer a good experience for both clients and advisers.
58% of advisers thought post sale administration is the most important factor with point of sale literature (51%) being the next most important.
The importance of a smooth and simple process was highlighted by the survey which suggested that 52% of advisers take less than six hours to deal with standard annuity cases. With enhanced or impaired annuities, more than 70% of respondents spend in excess of six hours per case. In fact almost 40% said they spend more than nine hours on each enhanced case they deal with.
Advisers spend in excess of six hours on the majority of enhanced annuity cases.
Richard Priestley, Executive Director, Retirement Income at Canada Life said:
“Canada Life’s focus is to keep the client at the heart of everything we do and we recognise the importance of post sale administration for client and adviser alike. Our aim is to provide a speedy and efficient service for the parts of the process we control.
“On average through March 2013 the time taken to complete annuity purchase from receipt of application to policy documents issued was 15 working days at Canada Life. In 99% of cases we request the annuity fund from the ceding provider the day we receive the application from the client. When we receive the funds from the ceding provider we set up the annuity in two days in 98% of cases.
“With annuity rates changing frequently in the market our high service standards gives clients a greater opportunity to secure the income they were initially expecting.
“Our research also shows that, for clients of the advisers surveyed, the financial strength of the annuity provider was the most important factor in choice of provider outside of annuity rate. Canada Life is rated A+ for financial strength by AM Best1.”
Mark Wilson, Director of Marketing & Product Management at iPipeline commented:
“The open market ‘OPTIONS’ initiative, has made significant progress in driving down the time taken to move money from one office to the other but we need to see continued improvement to match client and adviser expectations.
“iPipeline are committed to effecting positive change within our industry, including the retirement sector. Our neat range of innovative technology solutions aim to make life easier for customers and in turn their clients. We will continue to work closely with product providers to make it easier to process annuities.”
Notes to editors
This ‘Post RDR Annuities survey’ was run by iPipeline Ltd for and sponsored by Canada Life
The survey was promoted to Assureweb’s ‘At-retirement’ advisers and ran from 17 February to 1 March 2013
The survey was completed by 436 advisers
1 Canada Life Assurance Company (which owns 100% of Canada Life Limited)
For further information on Canada Life please contact:
The Wriglesworth Consultancy
020 7427 1400
About Canada Life
Canada Life is part of a group of companies controlled by Great-West Lifeco Inc., a diversified financial services holding company headquartered in Winnipeg, Canada. Through its subsidiary companies, Lifeco has operations in Canada, the United States, and Europe. Great-West Lifeco and its insurance subsidiaries have received strong ratings from major rating agencies.
Canada Life Limited, a wholly owned subsidiary of Great-West Lifeco, began operations in the United Kingdom in 1903 and looks after the retirement, investment and protection needs of individuals and companies alike. As well as providing stability and security through its individual contracts, Canada Life Limited has grown to become the leading provider of competitively priced group insurance solutions.
Canada Life offers competitive annuity rates together with award winning service. We provide around 350,000 annuities to clients in the UK worth in the region of £12 billion.
Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Canada Life International Limited and CLI Institutional Limited are Isle of Man registered companies authorised and regulated by the Isle of Man Insurance and Pensions Authority. Canada Life International Assurance Limited is authorised and regulated by the Central Bank of Ireland.
For further information on iPipeline please contact:
01242 211 731
Assureweb is now owned by iPipeline, the leader in on-demand marketing, selling and processing solutions for the top insurance providers, distributors and adviser in the US.
iPipeline leads its industry in providing the next-generation suite of sales distribution software to the insurance and financial services markets through its on-demand service. iPipeline’s channel solutions automate activities for CRM, forms distribution and processing, quotes and illustrations, in Good Order e-Applications, agency management, data services, policy delivery and related services, enabling the insurance industry to market, sell, and process faster.
With headquarters in Exton, Pennsylvania, iPipeline has locations in Atlanta, Charlotte, Danville, Milwaukee, Salt Lake City, Tokyo, UK, and Vancouver.
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