Member Experience Now Central to Pension Scheme Buy-Ins and Buy-Outs

Pension schemes that prioritise member experience early in their buy-in and buy-out journey are more likely to achieve a smoother transition and maintain a high level of service, claims Hymans Robertson. As the pension risk transfer market continues to evolve member experience has become a defining factor for trustees when selecting insurers for buy-in and buy-out transactions. With competitive pricing and a growing number of insurers in the market, the leading pensions and financial services consultancy the firm has increasingly seen member experience becoming a key area of focus for trustees. It suggests that Trustees must carry out thorough due diligence on insurers’ administrative capabilities to understand what the member experience will look like throughout the retirement journey. This should be done both as part of the insurer selection for the buy-in transaction and also as a scheme approaches buy-out.

Insurers have always put members at the forefront and are bound by consumer duty. However, given the increasing number of deferred members who require support throughout their retirement journey, insurers are investing heavily in what they offer members beyond standard administration. Innovations include enhanced communications, educational resources, online functionality, and support for complex benefit options. These improvements are designed not only to meet regulatory obligations but also to stand out in a competitive market. 
 
Commenting on the importance of early planning, Donna Prince, Head of Member Experience, Hymans Robertson said: 
 
“We’re seeing trustees place member experience at the heart of their endgame strategy. Schemes in strong funding positions are now looking beyond price, focusing on how insurers can deliver a seamless transition and maintain a high quality of service. By engaging insurers early and focusing on what matters most to members, schemes can ensure a smooth transition from buy-in to buy-out, with minimal disruption for members.  
 
“Our recent work with trustees has shown that tailoring the broking process to reflect member priorities, such as maintaining access to online services and ensuring continuity in communications, gives trustees confidence in their insurer selection and sets clear expectations for the future.” 
 
Lara Desay, Head of Risk Transfer, Hymans Robertson said: 

“Trustees need to consider member experience and insurer administration capabilities early in their endgame planning. Once a buy-in is enacted, it’s an irreversible decision. They need to be comfortable that they’re partnering with an insurer with a focus on enhancing administration and member experience. By doing so, trustees not only secure member benefits in full, but ensure their members are in safe hands and will receive the same good service that they have strived to provide themselves. They also need to be confident that their chosen insurer is committed to delivering excellent service and support for members, both now and in the future.” 
 
A copy of the article ‘The importance of member experience in pension scheme buy-ins and buy-outs’ can be accessed here.

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