Jessica O'ConnorBroadstone has launched Broadstone CARE, a new specialist service designed to support trustees and sponsors of defined benefit (DB) pension schemes that remain in legacy insured contracts.
The service aims to help schemes navigate increasingly complex historic insurance arrangements, many of which contain unusual guarantees, investment structures, benefit terms and charging models.
According to Broadstone, changing regulation and financial conditions have led some insurers to reduce services, outsource administration or withdraw from the market entirely, leaving some schemes facing operational complexity and higher costs.
Broadstone CARE operates through a four-stage framework – Collate, Analyse, Recommend and Execute – intended to help trustees and sponsors better understand their contracts and maximise value whether they remain within the arrangement or move away from it.
Chris Rice, head of trustee services at Broadstone, said: “Legacy insured contracts were a great idea when they were initially set up, providing a ‘one stop shop’ for all services and including valuable investment guarantees.
“However, the evolving regulatory environment and financial conditions have caused insurers to look at ways of reducing their exposure to these contracts, encouraging exit, outsourcing, removal of services or even withdrawing from the market entirely.”
Rice added: “It is important that these schemes receive the necessary, specialist advice to maximise value from either running or exiting the contract and receiving services from a dedicated and attentive team of experts.
“Broadstone CARE seeks to achieve this and offers a comprehensive process to ensure trustees and sponsors can evaluate their options and maximise value.”
