ABI defends annuity changes

The Association of British Insurers (ABI) has defended changes it made back in February to the way its members process open market annuities. Until that date, the ABI's guidelines stated that members should aim to process requests for investment redemptions within 10 working days. But the new guidance, as outlined in the Handling Customer Claims document, states that this should now be carried out by the selected retirement date instead.

The announcement caused a backlash from industry IFAs, who claimed the ABI was 'banging away at the hull of a sinking retirement boat.' But responding to the recent ctiticisms, ABI spokesman Jon French said: "The ABI believes that the new guidance is, in fact, more stringent and gives customers more certainty about when their payments should start.

"There was a wide consultation on the new guidance with ABI member companies and all relevant members have been informed of the changes. The industry is taking concrete steps to significantly improve transfer times and all other aspects of the customer experience of arranging an annuity."

25 April 2008 © Moneyextra.com

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