Partnership could pay more than £15m to Openwork as part of its deal to become the network’s sole provider of annuities.
Last year (25 May 2013) Openwork and Partnership signed a deal under which Partnership would be the only provider of enhanced and standard annuities for its restricted annuity panel, which they previously said would help ensure customers received a “decent rate”.
Now, the companies have decided to reveal the details of the deal.
Partnership agreed to pay £8.25m towards the development and delivery of an IT system to support Openwork’s new underwriting process, meaning the cost will not be passed on to customers.
As well, Partnership will pay Openwork up to £1.4m per year for five years in relation to on-going services to be provided to the former by the latter, including the promotion of Partnership’s annuities to Openwork customers, provision of training and seminars to Openwork advisers, account management services and maintenance of the new IT system.
According to Openwork, approximately 60 per cent of its annuity customers are now qualifying for an enhanced annuity compared to the 31 per cent of people in the wider market.
