Safeguarding member experience after buyout represents both an opportunity and a responsibility for trustees and advisers, according to Law Debenture and LCP.

In the first of a planned series of thought pieces, the firms called for greater transparency and consistency in how insurers deliver and report on member experience in the bulk annuity market, arguing that trustees should push for clearer, more meaningful information both before entering a buy-in and long after a scheme wind-up.

With most pension risk transfer (PRT) transactions now involving the insurance of large populations of deferred members - many of whom still need to make decisions about their benefits - the firms warned that assessing what 'good' looks like in practice remained challenging.

While objective metrics such as call waiting times, complaint volumes and quotation turnaround periods can be compared, they argued these measures only told part of the story.

Indeed, subjective factors including communication tone, empathy in bereavement cases, and the handling of complex or non-standard queries were harder to assess consistently across insurers.

Service models also continued to evolve as insurers invested in technology, adjusted administration structures and undertook corporate activity, meaning past performance was not always a reliable guide.

Meanwhile, the firms suggested that the evolving regulatory landscape added a further layer of complexity.

They acknowledged that while the extension of the Financial Conduct Authority’s Consumer Duty to insurers was raising standards, trustees could find it difficult to determine how those requirements translated into day-to-day improvements for members after buyout, and whether those standards would be maintained over the long term.

The buy-in phase was identified as a particularly sensitive period.

Although trustees typically reassured members that little would change initially beyond increased benefit security, in practice, the transition can lead to slower turnaround times for benefit quotations and reduced online functionality.

This can generate member dissatisfaction and undermine the positive messaging surrounding improved benefit security.

Despite describing the information available as "imperfect information" when selecting an insurer, Law Debenture and LCP stressed that trustees were not powerless.

They argued there was a “clear opportunity - arguably a responsibility - for trustees, advisers and insurers to collaborate to call for more transparent reporting, clearer service commitments and a sharper focus on outcomes that genuinely matter to members”.

LCP senior consultant and member experience specialist, Katie North-Walker, emphasised that financial strength would always remain central when selecting an insurer, but price was no longer the sole determinant.

“Trustees increasingly want confidence that their members will be well-treated during the buy-in phase and long after wind-up,” she noted.

North-Walker added that as scrutiny of member experience intensified, there was a growing need for more consistent reporting and clearer information about what members could expect once their benefits were administered by an insurer.

“With regulation now also focusing on the outcome for insurers’ policyholders, there is a real opportunity for trustees and advisers to seek and act on information, to safeguard member experience,” she said.

Law Debenture trustee director, Lynne Rawcliffe, added that insurers could, in some cases, offer stronger member services than individual schemes following buyout, including clearer communications and improved digital access.

However, she cautioned that, without clear contractual commitments and transparency, there was a risk that focus and investment could wane over time, particularly as buy-in demand declined, drawing comparisons with the slower experience often associated with legacy additional voluntary contribution arrangements.

Rawcliffe claimed trustees would welcome steps to strengthen long-term member support and expressed hope that insurers would engage positively with the initiative amid a growing range of endgame options designed to improve member outcomes.

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