Life Insurance & Pensions Technology Provider Records a More than 60% Increase in Adviser Annuity Comparisons on its Portal Last Year
Financial services technology provider iPipeline reported a significant increase in the demand for annuities last year amongst advisers. iPipeline has been tracking the number of annuity comparisons produced on its portal since 2013 and noted this significant trend during 2023.
Quotes for annuities were up 60.1% in 2023 compared to the previous year. This level also surpasses the previous demand, which occurred in 2013 when quotes increased by 20.2%, iPipeline also reported that Q3 and Q4 2023 saw the highest number of comparisons run on its portal than for any other quarters in the previous decade.
iPipeline’s annuities portal accounts for 25% of all quotes in the retirement market.
“Interest in annuities has been increasing steadily alongside interest rates,” said Paul Yates, Product Strategy Director at iPipeline. “Now, with inflation falling and interest rates expected to follow, advisers are looking to lock in competitive rates sooner rather than later. Bearing in mind the complexity and shifting regulatory landscape and the options available across annuities and drawdown, proper financial planning advice is more important than ever.”
Yates added that “this year could well be one of huge change in the pensions and retirement sector. Reforms could unlock significant capital and providers must be ready for the swell of activity this could generate. We know from experience that the legacy technology in pensions and annuities is a market drag – providers need to get their systems in order as a matter of urgency or risk losing out.”
According to Yates, annuities deliver a great solution for those people wanting to secure a portion of their future income.
“As people with drawdown pots age, they will increasingly look at annuities to deliver this certainty to cover their non-discretionary outgoings as a minimum,” said Yates. “This, alongside extending life expectancy, Consumer Duty, and the Retirement Outcomes Review, will drive greater analysis and use of annuities in the UK.”
iPipeline launched the Building a Better Retirement report with Retirement Review in November 2023. It discovered that among 40 to66 year-old UK savers, the average target pot is £223,503, while on average the total value of personal pension pots across all schemes is £167,891. Nearly one-quarter of this group (23%), however, estimates they have less than £50,000 while 37% have no target at all.
Kate Shaw, Director at Financial Life Planning, said: “The pensions landscape is already complex and, with new regulations, a possible change in Government coming and uncertainty around interest rates this year, it will make the need for financial planning more important than ever. Annuities are playing an important role in retirement planning again after having a low profile for years – but how and when to utilise them is a question that should go through an adviser to assess on a case-by-case basis. Making sure that medical histories are properly considered alongside dependent and index linking needs means each case is different, and advice can make all the difference in the outcome.”
Matthew Morris of Retirement Review added: “Adviser and pensions providers recognise there is a huge opportunity to build a better retirement for the UK in the coming months. There is clearly an appetite from politicians and the wider state to create a more dynamic framework. At the same time there is so much change in the sector that it’s hard to establish any kind of consistent retirement structure to work within. As an industry, we need urgently to work out what we want and develop a roadmap of how to get there, otherwise someone else who doesn’t understand the needs of savers will do it for us.”
About iPipeline
iPipeline is a leading global provider of comprehensive and integrated digital solutions for the life insurance and financial services industries in North America, and life insurance and pensions industries in the UK. iPipeline couples one of the most expansive digital and automated platforms with one of the industry’s largest data libraries to accelerate, automate, and simplify various applications, processes, and workflows – from quote to commission – with seamless integration. The company’s vision is to help everyone achieve lasting financial security by delivering innovative solutions that connect, simplify, and transform the industry.
Since its establishment in 1995, iPipeline has helped protect more than 49 million people, and today is trusted around the world by more than 100 insurance carriers, financial institutions, and providers, and more than 2,500 broker dealers, Brokerage General Agencies (BGAs), Independent Marketing Organizations (IMOs), and Managing General Agents (MGAs). Connected to more than 500,000 agents and advisers/advisors, the company collected more than $33 billion in premium in life insurance and $55 billion in annuities in 2022. iPipeline operates as a business unit of Roper Technologies (Nasdaq: ROP), a constituent of the Nasdaq 100, S&P 500® and Fortune 1000® indices. For more information, please visit https://www.ipipeline-ox-bak.purpleplanet.website and select your country of origin.
Media Enquiries
Nick Jones, Director, Marketing, 07712 011074, njones@ipipeline.com
Elissa Dennis, Carr Consulting & Communications, 07787 514791, elissa@carrcandc.co.uk
