Member experience drives pension scheme buy-ins and buy-outs – Hymans Robertson

Member experience has become a main factor for pension scheme buy-ins and buy-outs, according to Hymans Robertson. 

Trustees are now focusing on how insurers handle member experience when selecting who to work with, especially as the pension risk transfer market gets more competitive. 

The firm reported that trustees are doing more checks on insurers’ admin capabilities to see what kind of service members will get both during and after the transaction.

Insurers are expected to meet Consumer Duty and support a growing number of deferred members. 

Hymans Robertson noted that insurers are putting more into communications, educational tools, online services, and support for members with complex benefits, to improve service and stand out in the market.

Donna Prince, head of member experience at 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.”

Prince added: “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 at Hymans Robertson, said: “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.”

Desay added: “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.”