The group, which is so far unnamed, is developing a manifesto for change that aims to ensure people nearing retirement understand the different options available to them and exercise their right to shop around for the best rate.
The founding firms are believed to make up the management board of the trade body, which is designed to complement the Association of British Insurers.
A wider group of providers, adviser firms and consumer groups such as Which? will be invited to join an advisory board in the coming weeks, which will contribute to the trade body’s work.
The group is understood to be modelling itself on Safe Home Income Plans. Like Ship, its members will have to subscribe to certain standards in order to participate. The trade body will be funded by its membership. Hargreaves Lansdown head of pensions research Tom McPhail is believed to be acting chairman, with a permanent chairman to be announced in due course.
The trade body’s manifesto will go to the advisory board for consultation in August before the group begins lobbying to try to influence the major political parties’ policies.
A Just Retirement spokesman says: “Just Retirement is committed to improving the general awareness of the open market option, therefore we welcome any industry-led initiatives that tackle this situation. We look forward to hearing more about this group’s work.”
The Retirement Adviser head of retirement planning Nick Flynn says: “This sounds excellent. The more publicity and coverage the Omo gets, the better for both advisers and consumers. It would be good for them to widen the net in terms of providers because there are some significant players not included in this list but this is definitely a good start.”