The Association of British Insurers says the financial services industry still needs to earn the Government’s trust and prove it is acting in the best interests of clients on auto-enrolment.
Speaking at PIMS on board the Aurora last week, ABI director of life, savings and protection Stephen Gay said although auto-enrolment is a huge opportunity for providers, they are being subject to intense scrutiny from ministers.
Gay said: “There is a sense among policy makers that the industry has been handed a huge opportunity with auto-enrolment and it is up to show we are worthy of it.
“The Government has decided that its flagship pension reform is one in which the industry will play a major role but the financial services industry does not enjoy a good reputation in Westminster.”
Gay said ministers are not taking for granted that the financial services sector will act in clients best interests on auto-enrolment.
He said: “Nobody in Westminster is assuming that left to our own devices, we will do what is best for ordinary employees.”
Gay added the current pension policies, including auto-enrolment and pot follows member, are not enough to plug the pensions gap entirely, and urged the industry to come up with further solutions.