Our solutions 


Innovative solutions that deliver choice, certainty and value

We believe our approach to de-risking is a little bit different. We provide a choice of medical and standard pricing solutions which have the potential to reduce the cost of a buy-in or buy-out policy. 

Medical underwriting has always been at the heart of the transactions we’ve completed. Along the way, we’ve developed member segmentation solutions. These make it possible for schemes of all shapes and sizes to medically underwrite.

And we’ve added guaranteed prices for our medical underwriting solution so that ahead of transaction, you can compare our prices with the market.

Alongside these medically underwritten options, we’ve ensured our standard pricing (without medical underwriting) is also competitive.

We’ll continue to be different. We are the only insurer actively pricing bulk annuities on a medically underwritten basis in the UK. We’ll listen to your feedback and build on our unique intellectual property from medical underwriting to develop solutions that optimise risk reduction from available assets.

Medical and standard - our pricing solutions at a glance
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We offer a range of medically underwritten and standard (non-medically underwritten) de-risking solutions.

Our Propositions

Type

Pre or post transaction

Considerations

Risks and rewards

DB Choice MUBA+ (medical) & Standard

Prices are confirmed pre-transaction and if our medically underwritten (MUBA+) price is selected,  medical data is collected post transaction

  • Available for segments between ten and 300 members where average liability is <£1m per member.
  • For schemes larger than 300 members we can use ‘top slicing’ or other segmentation techniques to meet this criteria.
  • We provide guaranteed medical and standard prices before the transaction. To calculate the medical price, we discount the standard price by the average savings we expect to achieve by colleting medical data.
  •  If our medical price is selected, we collect medical data after the transaction,  and all trustees need to do is endorse the process
  • We take on the risk of the medical underwriting process.
  • There’s no risk to trustees - both prices are known ahead of transaction and can be compared with the market. Trustees can then select the best price and process for them.
  • We share the guaranteed reward, in the form of a ‘medical discount’ with the trustees.
  • The medical price does not change whatever the result of the collected data.

Medical

Medical data is collected and then the price is confirmed pre-transaction

  • Available for segments or populations with <300 members.
  • We can also ‘top slice’ larger schemes to create a segment of <300 members with the highest liabilities.  We collect medical data before the transaction, and all trustees need to do is endorse the process.
  • If a few members have significant lifestyle factors or medical conditions the premium will be reduced compared with a standard process. If all members are healthy, the premium would increase slightly compared with a standard process.
  • We complete the data collection and analysis before pricing and then share any potential savings. There’s a small risk that the final price may be higher than a standard process if the data reveals all members to be healthy. 
  • The transaction completes when we’ve collected and analysed medical data. 
  • We may offer a lower price than a standard process. Trustees can keep all savings we achieve from the medical process.

Standard 

Price is confirmed pre-transaction

  • Available for populations of >300 members.
  • We don’t collect medical data
  • There’s no risk - our price is known ahead of the transaction and can be compared with the rest of the market.
  • We don’t medically underwrite larger populations as savings would be negated due to the law of large numbers.
 
Medically underwritten solutions
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We are innovators of medical underwriting solutions with specialist expertise to collect, assess and price on a medical basis.

Medical underwriting is the process of pricing DB de-risking solutions by collecting lifestyle and medical information. This approach achieves a more robust assessment of longevity than a standard process which relies on factors such as postcode, age, sex and accrued benefits.

By collecting lifestyle and medical data from members, we are able to supply a ‘Just’ price based on their individual circumstances and we are able to price transactions more accurately.

A standard process using statistical analysis employing factors such as postcode will often show DB members as amongst the longest lived. They are therefore priced accordingly.

The medical process can benefit trustees by reducing the premium charged to secure the pensioner benefits in comparison to a standard (non-medically underwritten) process.

A medical process is most effective for segments of less than 300 members.

DB Choice – the pricing solution that gives you choice, certainty and value
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Combining the benefits of standard and medically priced solutions

DB Choice is an innovative new pricing approach. It provides the benefits of standard and medically underwritten pricing so you can see the value that medical underwriting will deliver before you transact.

We’ve listened to the needs of employee benefit consultants and trustees and developed DB Choice to demonstrate the value of the medical discount at the start of the de-risking process.

DB Choice offers pension scheme trustees and sponsoring employers two guaranteed prices at the point of quotation to deliver certainty for both standard and medical underwriting solutions.

The medically underwritten DB Choice premium (MUBA +) includes a discount to the standard price, based on the average reduction in premium we expect to achieve after collecting medical data.  Where the MUBA + price is selected, we begin the collection of lifestyle and medical data. But there is no later impact on the premium, regardless of the outcome of the medical underwriting process.

Whichever price is selected, the transaction can complete immediately and doesn’t have to wait for the collection of medical data. Therefore, favourable market conditions can be secured and monthly lump-sum payments to the trustees from us will start the following month.

How DB Choice works

how DB Choice works image

Ahead of the transaction, Just provides two guaranteed prices: a standard price and a lower MUBA+ medically underwritten price which is discounted by the average reduction in premium we expect to achieve after collecting medical data.

Trustees decide whether to proceed with the MUBA+ medically underwritten transaction. If they go ahead, they pay the guaranteed price.

Once the transaction is completed, we collect medical and lifestyle data. The premium has already been paid and will not change, regardless of the outcome of the medical underwriting exercise.

DB Choice is available for transactions containing 10-300 members, where the average liability for each member is less than £1 million. This means that for the first time, standard pricing will be available from us for segments of 10-300 members - in addition to the new guaranteed MUBA + price.

DB Choice gives trustees sight of a guaranteed medically underwritten price up-front before we contact members to request medical data.  Effectively, we’re removing any uncertainty about the price ahead of transaction and offering trustees a hassle-free solution at a discounted price.

Medical data collected by us

If you decide to transact on the MUBA + medical basis, we collect the lifestyle and medical data on your behalf and you don’t pay for this service. All we ask is that you endorse this process, by writing to the members covered, to request their participation. We are happy to work with you to ensure your members understand why we’re requesting this information.

Post transaction, we’ll write to a subset of the membership, focusing on those with highest liability, with a simple medical questionnaire. For those members who give their consent and have significant lifestyle factors or medical conditions, one of our team may conduct a short follow-up telephone interview and request a report from their GP.

Our MUBA + price is not dependent on members responding and is not affected by any lifestyle factors or health conditions they disclose. The price is guaranteed and does not change whatever the outcome of the medical underwriting exercise.

Pre-transaction medical underwriting
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Some trustees are happy to accept more risk from the medical process in the expectation of greater reward. For them, we continue to offer pre-transaction medical underwriting for segments of 300 or less.

We collect medical data before the transaction and trustees get to keep all the savings achieved. However, they won’t know the price until medical data had been collected.

This proposition can be particularly effective where segments of members with highest liabilities are created, we call this ‘top slicing’ - to create segments of 300 or less from larger populations.

For many trustees, the potential rewards of collecting medical data outweigh the risks. This is particularly true for segments with higher liabilities, where it only takes one member to have significant lifestyle factors or medical conditions (such as obesity, a coronary condition or cancer) for the premium to be significantly reduced and therefore deliver savings.

If trustees are unwilling to accept this relatively small risk, then DB Choice MUBA + pricing is available to them.

The collection process for medical data is the same as described above for DB Choice. Unlike DB Choice MUBA +, the transaction does not complete until the collection of medical data is completed.

Standard pricing
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We offer standard pricing (non-medically underwritten) for segments greater than 300 members. Where there are less than 300 members and trustees don’t want to collect medical data our DB Choice standard price is available.

Standard pricing employs proxies for health and longevity such as postcode, age, sex, salary and present value of accrued benefits.

This is effective for larger populations where the law of large numbers mean that longevity trends towards the average and the benefit of medical underwriting may be negated.

There is no requirement to contact members to collect medical data.

Deciding which members to insure – segmentation options
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The greatest opportunity for medical underwriting to deliver benefits can occur where there are a small number of scheme members who account for a high proportion of the schemes’ liabilities and are assessed by medical underwriting as having life expectancies below average.

Such ‘top-slicing’ targets the pensioners with the largest benefit entitlements for medical underwriting, whether that is the 20 largest pensioner liabilities in a scheme of £50m or the 100 largest pensioner liabilities in a scheme of £2bn. It’s an efficient methodology to reduce risk for the assets available and enables medical underwriting to be applied when schemes have a population greater than 300 members.