The Budget, a data-based perspective for pension providers
The Chancellor’s surprise announcement about changes to personal pensions - including the decision that individuals will no longer be forced to buy an annuity for their retirement - has rocked the industry to its foundations.
The changes provide a real opportunity to introduce flexibility and choice for customers but also present a challenge for pension providers who have historically structured products based on long-term investments.
The immediate response of several leading providers has been to address the concerns of customers who have recently purchased or currently plan to purchase an annuity. Going forward, however, providers will need to address the fundamental, operational changes required. A more granular, dynamic and responsive data environment will also be an essential requirement in order to survive and thrive in the new world of pensions.
An agile data environment - one which enables rapid access and analytics to create actionable intelligence - underpins future success across business functions, including: marketing new product development pricing business planning operations management information financial and compliance reporting and risk management.
Pension providers that lead the development of new business practices to become fully customer-centric - and have the ability to define and utilise new data insights as the basis of intelligent decision-making - will emerge as winners.