Insurers urged to disclose BPA member service data
Law Debenture and LCP have called for bulk purchase annuity (BPA) insurers to publish annual metrics on member experience and service quality. The recommendation targets inconsistencies in reporting practices, which currently make it difficult for trustees to compare providers effectively. These differences in reporting obscure performance variations that trustees need to evaluate.
Insurers operating in the BPA market differ significantly in scale, operational models, and service offerings. Some specialize in managing large, established buyout populations, while others focus on smaller but fast-growing groups. Administration approaches vary further: certain insurers handle services internally, whereas others outsource to third-party providers. Beyond core administration, additional services include technology platforms, independent financial advice, in-person events, and online general practitioner access.
Despite these operational variations, Law Debenture and LCP argue that standardized reporting is necessary. Insurers already gather operational and customer service data to comply with the Financial Conduct Authority’s Consumer Duty requirements. However, much of this data remains unpublished or presented in inconsistent formats, limiting its usefulness for trustees.
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Standardized metrics for trustee comparisons
The proposed metrics would cover key performance areas, including response times for written, telephone, and digital channels. Insurers would also report complaint volumes, the percentage upheld, average resolution times, and total compensation or redress paid. Additional figures could include Net Promoter Scores or equivalent customer satisfaction measures, along with the number and duration of service interruptions, administration errors, and data incidents.
A critical requirement is that these metrics focus exclusively on buyout policyholders, not aggregated with other business lines. This focus ensures trustees can assess performance relevant to their members’ specific needs rather than relying on generalized, less precise data.
Lynne Rawcliffe, a trustee director at Law Debenture, stated that a buyout should provide more than just a pension—it must deliver a positive experience throughout the process. “Many insurers are already collecting information to assess the quality of member services, but these are not shared publicly. This makes it difficult to compare providers without incurring additional advice costs. Making information public could also incentivise insurers to continue to provide a high-quality service well into the future,” she said.
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Service failures persist despite industry investments
Recent cases reveal ongoing challenges despite some insurers’ strong service investments. Policyholders have reported delays in receiving benefit quotations after buyouts, and pension increases have occasionally been applied late or incorrectly. Although these issues affect only a minority, their consequences can be substantial, and the number of affected members may grow as buyout populations expand.
Katie North-Walker, a senior consultant at LCP, noted that insurers already share extensive information about their member experience propositions with professional advisers. “However, as demand continues to grow and insurers look to innovate and differentiate, it can be difficult for trustees to accurately rank providers on the basics,” she continued. “Clear and transparent reporting would make it much easier to benchmark performance across the market, driving higher standards and helping insurers demonstrate how they are delivering on their commitments.”
The Pension Insurance Corporation (PIC) expressed support for the proposals, stating its existing reporting already covers many of the recommended measures. Andy Rose, PIC head of customer operations, added: “We support the recommendations and believe greater transparency in customer service reporting can help drive accountability and raise standards across the industry. It enables policyholders to better understand the service they can expect, while helping providers demonstrate to trustees how they are delivering on their commitments.”
