Member experience is becoming the key factor in insurer selection

Poll results from a recent LCP webinar on the pension risk transfer (PRT) market show that member experience is rising up the agenda for schemes when selecting an insurer.

When asked what would influence their choice between a new market entrant and an established provider, 36% of respondents said that if pricing was equal, member experience would be the deciding factor. However, only 8% said they felt well-informed about the differences between providers, and around 25% thought or had assumed the providers all had very similar offerings.

These findings follow the publication of LCP’s latest Pension Risk Transfer update, which highlights how insurers are evolving their approach to member experience. With more options now available, LCP emphasises that the market is no longer one-size-fits-all and that schemes need to prioritise what will matter most to their members.

Imogen Cothay, Partner in LCP's Pension Risk Transfer team, said: “We are seeing an increasingly competitive market, with both established insurers and new entrants investing in how they differentiate themselves. Member experience is a big part of that, and it’s not just about what they offer, but how clearly those differences are communicated to schemes.”

Katie North-Walker, Senior Consultant in LCP’s Pension Risk Transfer team, added: “Which insurer to select is the most important decision that trustees will make for their members, but many are still in the early stages of understanding what the different insurers actually offer. Bridging this knowledge gap is essential for making well-informed decisions. Schemes need to ask the right questions of each provider to ensure the best outcome for their members.”