Axa is trialing its enhanced annuity product with Hargreaves Lansdown.
As first reported in Money Marketing, Axa is piloting an enhanced annuity product with a group of specialist annuity advisers and plans to offer it to the wider market next year.
The firm says the product is in the early stages but it is looking at how it can offer better income rates to customers with poor health.
Quotes are offered with a 14 day guarantee on the rate and this means the customer knows what rate they will receive.
Axa wealth management David Wade says: “The market for enhanced annuities is growing rapidly and it therefore represents a significant opportunity for us. By running with this pilot we are keen to test our capability and the appetite in the Enhanced Annuity market in order to confirm the attractiveness of the market and build our reputation as an innovative provider of retirement income solutions.”
Hargreaves Lansdown pensions analyst Nigel Callaghan says: “If we are going to help investors get better value for money, this market has to develop and the introduction of innovative annuity solutions is an important part of this. Axa’s solution allows them to get a much clearer idea of the life expectancy of consumers and therefore calculate a more realistic income.”