View more on these topics

Pru to switch to gender-neutral annuities in November

Prudential 480
Source: Prudential

Prudential will switch to gender-neutral annuity rates from 12 November, setting it apart from other providers who are amending terms and conditions so customers can access gender-specific quotes until 20 December.

In March last year, the European Court of Justice ruled insurers cannot price products based on gender from 21 December this year.

The move will force providers to radically alter the way they price annuities, life insurance and health insurance.

Both LV= and Partnership have confirmed they will honour gender-specific annuity quotes as long as they receive a completed and signed annuity application before midnight on 20 December.

However, the Pru has decided to stop quoting on a gender-specific basis almost six weeks ahead of the deadline. The provider will continue to accept applications on quotes obtained before 12 November until 13 December.

A spokeswoman says: “Prudential will apply gender neutral pricing to all annuity products from 12 November, allowing advisers sufficient time to complete the transactions with clients and to ensure that all funds are in place ahead of the December deadline.

“From experience we would normally expect a timeline of between three and six weeks from an adviser receiving a quote to the client purchasing an annuity and as we are expecting to see a significant spike in business in this period we have put in place realistic timescales to manage the expectations of advisers and their clients.

“It is important to remember, however, that it will not be in the best interests of all men to vest before this date. Advisers need to consider all factors before reaching this decision.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment