Annuities market is in need of more innovation

1) From index providers: annuity reference benchmarks so open-market quoted rates can be presented relative to a transparent and consistent benchmark;

2) From asset managers: designing the investment and administration capacity for collective drawdown schemes as an alternative to annuities;

3) From providers and/or investment banks: fixed-term non-life portable guaranteed income products as an alternative to life-assured annuities;

4) From annuity brokers: standardised and consistent fee presentation;

5) From legislators and regulators: review of legislation to ensure any such improvements can be accommodated.

Any parties wishing to participate in some much-needed creativity in this area are invited to contact us to join an industry-led initiative.

Henry Cobbe

Managing director

Elston Consulting

London