MorganAsh has officially launched Tele-Interviewing service for impaired annuities and is considering long term care market entry.
The service, in trial since February, has resulted in over 70% of consumers receiving enhanced rates for their annuity, an increase of approximately 50% compared to paper forms.
Under the service, brokers advise consumers in the normal manner about pension options. The adviser then books the medical interview, which covers the medical questions on the Common Quotation Request Form (CQRF).
After one tele-interview with the consumer data is sent to all impaired annuity providers (Just Retirement, Partnership, MGM, LV=, Canada Life, Aviva, Legal & General and Prudential) for underwriting and pricing.
Commenting on the immediate needs annuity market, Andrew Gething, managing director of MorganAsh, said: "We are currently not doing any long term care products but absolutely would. We have talked quite a bit about this.
"There is an idea to do one interview at retirement stage and use that for both the pension annuity and for long term care planning. But there are not that many long term care products out there at the moment."
Gething added that Morgan Ash believed the distinctions between annuities would diminish, with everyone getting a personalized annuity.
He said: "As more people become assessed we see the standard annuities being eaten away by a system of personalized annuities. Thus our market would be everybody.
"It is important that people are assessed in order to discuss their options, many could get double or triple what they would otherwise get."
Canada Life UK, is one provider considering the service. Richard Helyer, chief underwriter & claims manager at the provider,commented: "We have adopted Tele-Interviewing in our protection business and there are clear benefits of improved information, simpler processes, and reduced risks. We are keen for such benefits to follow in the Impaired Annuity market."
Gething confirmed the company was currently running the service for two providers and "a number of brokers." These include Just Retirement on the provider side and Better Retirement on the broker side.
