Financial Services:
Life & Pensions Funds |
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In the next two years, the pensions industry will undergo more change than any other area of financial services. Even under current market conditions where people have less money to save, decisions need to be made on how to service and develop pension provision.
Both pension distributors and product providers should urgently consider existing skill sets and capabilities if they want to succeed in the re-shaped industry that will emerge. The key issues will be: |
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| 1. Cost reduction. Life Companies can no longer rely on washing all expenses through their with profit funds. With reduced income, the pressure is on to reduce costs – but are Life Company staff suitably qualified to provide the solutions? There is still a tradition of actuarial qualifications for senior Life Company staff, but is this the right training to survive in today's investment climate? |
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2. Legacy systems. Life Company systems have been built up over many years to handle a diverse and complex range of life and pensions products. Many of these systems are now 20 or 30 years old, and some are expensive - even cumbersome - for companies to maintain. Ideally they should be replaced, but how can this be achieved when so much functionality is built into the old system - particularly if knowledge of that functionality is dissipating through retirement or redundancy?
Other key issues that will affect this area over the next few years are:
- Anticipating the effects of the move from DB to DC
- Growth and expanding diversity of SIPPs
- Supporting the distribution of pension products in the retail market
- Development of “worksite” marketing
- Selecting appropriate suppliers in the development of a pension proposition
If your organisation is facing any or all of these issues, FusionExperience has the knowledge and expertise to help. We make it our business to know what your future challenges will be, so we can provide the most relevant and innovative solutions. |
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 Find out more about our capabilities here |
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