With new insurers entering the defined benefit pension de-risking market who are willing to consider the health and lifestyle characteristics of individual scheme members when setting premiums, a panel of industry experts – chaired by Margaret Snowdon OBE, Director of JLT Employee Benefits – has been convened to develop an industry Good Practice Guide.
This panel consists of a number of key stakeholders and pension industry experts, including providers, trustees, employee benefit consultants and professional services firms, which together plan to author and produce a robust guide for the industry, which not only meets the needs of the current market but can be further developed as the market evolves and expands.
This Good Practice Guide will look to formalise and enhance the scope of the industry’s standards and will:
• Be factual and unbiased, referencing a wide market view on the suitability of the initiative;
• Set out key principles that should apply;
• Be practical, with support from appropriate explanations and illustrations;
• Serve to inform stakeholders of the key issues and process steps;
• Provide a good level of comfort to all users and customers; and
• Enable competitive pressure while protecting consumer interests.
The first meeting of this panel took place in early February and the Good Practice Guide will be issued in the second quarter of 2014.
Margaret Snowdon OBE, Director, JLT Employee Benefits, commented: “With an increasing number of businesses keen to explore using medical underwriting as part of their de-risking strategy, now is the time for the industry to step up and develop a robust guide to ensure good practice. We need to develop an atmosphere of trust by clearly highlighting the potential benefits and risks of the initiative, while outlining what companies, advisers, trustees and consumers can expect from the process.”
Composition of the panel of experts who co-authored the Good Practice Guide:
• JLT Employee Benefits and Chairman of the Panel – Margaret Snowdon OBE
• Partnership – Andy Morley
• Aviva – Stephen Robinson
• CMS Cameron McKenna – Keith Webster
• Hymans Robertson – James Mullins
• JLT Employee Benefits – Martyn Phillips
• Just Retirement – Tim Coulson
• Law Debenture – Michael Chatterton
• LCP – Emma Watkins
• Legal & General – Tom Ground/Michael Edwards
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