Technical Director of Intelligent Pensions David Trenner believes insurance companies use the implementation of simplification as an excuse for providing a tardy service on the transfer of funds and the payment of benefits. He attests that there is little incentive for these companies to improve.
“With pension simplification due in April, the insurers’ focus appears to be on getting their systems ready in anticipation of all the new business they hope to attract rather than speeding up the payment of money to people retiring,” Trenner said. “But what are insurers for if not to pay out benefits when they are due?”
“An insurer recently launched an investment product that proved to be very successful. At the same time, its turnaround time on retirement income processing rose to 21 working days. If it took 21 working days for the company’s chief executive’s salary to be paid into his account, then I’m sure the matter would soon be resolved as a matter of urgency!
“Treating customers fairly is a vital aspect of an insurer’s service and, to my mind, there’s no question that those insurers that fail to pay policyholders their money on time are treating them unfairly.”