Mitul Magudia, Chief Origination Officer at Pension Insurance Corporation
From your point of view, what have been the industry and policy highlights of the past 30 years?
We have seen a huge amount of innovation in the pensions industry over the last 30 years. Before 2006, buy-out and wind-up were restricted to very small schemes and situations where pension schemes were winding-up, often under stress. Being part of the birth of the bulk annuity market was a highlight for me because new providers were developing innovative solutions to meet the demand in the industry to provide long-term security to schemes. At the same time, we were navigating the seismic changes in the markets in 2008.
During this period, PIC has grown from a fledging start-up to a leading life insurer securing the pensions of over 400,000 people. We have invested billions of pounds in long-term sustainable assets like social housing, UK infrastructure and renewables. The cashflows from these assets will finance pension payments for decades to come. This shows what can be accomplished in this industry when we design products that work for the long term.
Where are we today in terms of delivering great outcomes to members? Where do we, as an industry, need to do more?
When we were developing our bulk annuity proposition for Trustees, we were a new entrant without a long-established household brand for trustees and pension scheme members. From the start we chose to focus on delivering outstanding customer service to our policyholders and investing in delivering great customer outcomes has continued to be the cornerstone of our product and strategy.
The feedback from our policyholders on their level of satisfaction shows the value customers place on being able to easily contact a knowledgeable administrator that can resolve queries through the communication channel of their choice (written, telephone or online).
Continuing to deliver great customer outcomes requires ongoing investment in making sure customer journeys meet the evolving needs of a new generation of retirees who are increasingly digitally focussed. New technology options are always emerging which can further improve the support and service we can offer. As an industry, we need to ensure we keep pace with these technological and societal changes.
Looking to the future, what are the key areas in which you expect pensions to develop to meet the need of members? How can those in the industry play a role in building a pensions system fit for the future?
With an ageing population, the industry will need to ensure that we can offer the support and accessibility needed by the increasing number of customers with vulnerabilities. Any products and processes need to be designed with the member at front of mind, making sure members are supported through the big life events of retirements and bereavements so that pensions do the job they were designed for.
Key to any future pensions system is getting the right balance between flexibility and security, particularly ensuring that members are empowered with the right level of understanding to make informed decisions about their retirement. It will always be important that any system gives people long-term security over their pension so they can enjoy a fulfilling retirement with confidence. Key to that security is ensuring that pension providers can invest in the right assets, like UK housing and infrastructure, to match the commitments made to current and future pensioners, helping drive economic growth.
