Driving changes for improved member experience
Panellists:
Andy Fryer, Head of Proposition Development, Just
Laura Pertile, Director of Member and Operational Services, Just
Rebecca Wood, Client Director and Head of Endgame Solutions, Vidette
Dina Kamal, Financial Adviser, Hub Group
What does a great retirement experience look like for DB members—and how can we help make it a reality?
That was the core question we asked at our June webinar, How insurers can support DB members at and through retirement. We brought together four expert panellists to explore what great member experience really looks like, how it’s evolving, and how insurers and trustees can work together to deliver it.
Across the discussion, four clear themes emerged—each pointing to how insurers and trustees can meaningfully improve support for DB members at and through retirement.
1. Member experience matters
Unsurprisingly, this was the central theme of the day. Andy kicked off the session with some stats from Just’s 2024 survey which showed that pre-retirement DB members are actively seeking support and communication, more education, and improved online functionality. And the need becomes ever more important when you take into account that almost half of pre-retirees consider themselves to be vulnerable or potentially vulnerable.
Laura explained that for her and her team good member experience is centred on strong communication and putting members first, saying: “We want to ensure our members feel like they’re engaging with a person who is genuinely driven to want to help them.” She highlighted that a good experience comes from receiving information, when they need it (or ask for it) and that the information gives them confidence in their decision making.
As each of our panellists pointed out in different ways, pensions can be complex, and for many people, even those who are pension-savvy, it can be a minefield to navigate the information and options. This complexity is exacerbated by the fact that many members have pension savings and assets in multiple places – across DB and DC schemes or in other forms.
Together, this makes personalised advice a potential differentiator in achieving the best member outcome. Dina explained that the advice must be specific to the individual and their personal objectives and take account of their broader financial situation. Members are then free to make their own decisions, backed by the right information and advice.
2. Technology and support are evolving, fast
Rebecca acknowledged that price continues to be a key factor for schemes exploring a buy-out, but that nevertheless, particularly in the current market where many schemes are well-funded, long term member experience is an important part of trustees’ decision-making processes.
“As trustees, we want to know that when we’re not there, our members will be looked after”
For insurers, operating at scale and investing millions in their member experience for the good of all schemes, it can be easier to deliver this support. This can be boosted with the use of technology and digital tools, online portals and other support services that offer members the option to “self-serve” when they want to. This includes access to accurate pension figures and data whenever a member needs to see their benefits.
Technology can also help insurers enhance processes, improve communication quality, and better understand member needs.
Many schemes are relatively small, making the cost of embracing and embedding technology, or appointing a firm of financial advisers, prohibitive when operating independently. In contrast, moving to an insurer means this support and technology will become available, which is an enhancement in most cases to the overall member experience.
3. Consumer Duty and the choice for insurers
Primarily aimed at retail providers rather than trustees transacting bulk annuities, the FCA’s Consumer Duty nonetheless does still apply for insurers after a scheme reaches buy-out.
What this looks like varies: Laura pointed out that insurers can either treat the Consumer Duty as a compliance issue or as a chance to identify improvements for members. In other words, is it treated as an opportunity to be proactively embraced now and for the future? An insurer’s approach here may be an important signal of the true underlying culture of the firm.
The option of professional help for members in the form of financial advice can also be an essential piece of the support package, helping individuals to ‘avoid foreseeable harm’ and ‘pursue their financial objectives’; two of the rules firms must abide by.
Becky cited real-life examples where this support has been invaluable for members, and without it, members would likely have achieved sub-optimal outcomes.
4. Trustees and insurers can collaborate to shape best-practice
If trustees and insurers are both prioritising member interests, there’s a real opportunity for insurers and professional trustees to jointly shape what best-practice looks like, especially post-buyout.
Our conclusion? Supporting members isn’t a tick-box exercise—it’s a chance to make a lasting difference and one where insurers are best placed to deliver this most effectively. Insurers can and should take the data that clearly demonstrate members’ appetites for education and engagement as a rallying call to deliver valued and meaningful connections with their members today.
Watch the webinar now to catch up on the whole conversation or get in touch to find out how we can help you get started.