Insurers Urged to Publish Member Experience Metrics

Bulk purchase annuity (BPA) insurers should publish annual member experience metrics for buyout policyholders, according to Law Debenture and LCP.

The firms say greater transparency would make it easier for trustees to compare providers and encourage continuous improvement. They warn that it’s currently difficult to assess insurers’ performance on member service.

Why consistent reporting matters

BPA insurers vary in size, maturity, and operating model. Some administer large, established buyout populations, while others serve smaller but rapidly growing groups. Some deliver administration in-house, while others use third-party administrators.

Providers offer a range of services, from digital platforms and financial advice to in-person gatherings and online GP access. Law Debenture and LCP argue that these distinctions make it vital to have standardised and comparable reporting.

Insurers already collect operational and customer service data for Financial Conduct Authority Consumer Duty requirements, but much of it is not published openly or on a standardized basis.

The firms called on every BPA insurer to provide an annual report on its targets and results for retirement and transfer quotations, settlements, and bereavement cases.

Proposed metrics for transparency

Insurers should reveal target and actual response times for written, phone, and digital interactions, plus complaint volumes, the proportion upheld, average resolution times, and the total value of compensation or redress paid.

Additional suggestions include Net Promoter Scores or similar satisfaction metrics, along with the number and duration of service interruptions, administration errors, and actual or near-miss data incidents.

The data should focus exclusively on buyout policyholders rather than being mixed with other business areas. Law Debenture trustee director Lynne Rawcliffe said, ‘A buyout must do more than just promise a pension. It must guarantee a positive experience when receiving it.’

Many insurers gather data to gauge member service quality, yet this information stays private. This prevents easy provider comparisons without extra advisory fees.

Industry response and next steps

While some insurers are investing heavily in member services, there have been instances of policyholders facing significant delays in receiving benefit quotations shortly after buyout. Law Debenture and LCP also noted that pension increases being applied late or incorrectly could potentially affect a minority of members.

LCP senior consultant Katie North-Walker noted, ‘As demand rises and insurers seek to innovate and stand out, trustees struggle to accurately rank providers on core elements.’

Pension Insurance Corporation (PIC) backed the proposals, stating that its existing reporting already covered many of the recommended measures. PIC head of customer operations Andy Rose added, “Greater transparency in customer service reporting can help drive accountability and raise standards across the industry.