Aviva is preparing to ramp-up the pressure on Government to make shopping around for an annuity the default option for savers.
In its ‘Rethinking Retirement’ report, published in June, the provider urged policymakers to implement a series of reforms designed to increase the number of people who shop around for an annuity at retirement.
However, it stopped short of calling for legislative changes.
Speaking to Money Marketing, Aviva UK Life chief executive David Barral (pictured) says: “Customers are losing millions by not shopping around for an annuity. The numbers who shop around are increasing but we don’t think it’s anywhere near where it needs to be.
“I’m seeing Mark Hoban in the next two or three weeks to discuss this issue specifically.
“We are going to push for the open market option to be the default for investors. I would rather have seen the industry sort this out, but it hasn’t.
“If we are going to build confidence and trust among consumers then they should absolutely be shopping around.”
The Association of British Insurers has resisted calls for legislative reform, instead preferring to focus on improving the quality of information provided by insurers at retirement. This included the launch of a ‘best practice’ guide for providers in January.
The Department for Work and Pensions-led Omo stakeholder working group, appointed by the Treasury, is currently assessing the practical steps required to make shopping around the default option at retirement. The group will report back to the Treasury later this year.