Annuities quotations

Annuities quotations

Around 80% of consumers could qualify for an enhanced annuity. But most quotes do not reflect this, due to the challenges of obtaining the full medical information in the correct format.

Financial advisers are busy, and few have in-depth healthcare expertise. Since annuities are for life, it’s worth taking the time to get it right and maximise the annuity rate. By thoroughly assessing and understanding consumers’ health, MorganAsh achieve higher annuity rates for the majority of people.

The service

MorganAsh’s annuity quotations service makes it easy to apply for impaired annuities. Our one-stop process allows financial advisers to submit applicants’ details to us – from which we complete a medical interview and send it through to the insurance providers for quotations. All interviews are undertaken by registered nurses, so we are able to provide the most accurate information to providers – ensuring that financial advisers get the best rates for their clients.

Features

• No detailed sensitive medical questioning of clients for advisers.

• A simple process – just supply the client’s details and MorganAsh does the rest.

• Dramatically reduces administration for financial advisers.

Benefits

• Confidential interview by a medical professional engenders greater disclosure from hesitant consumers.

• Independent medical assessments provide greater confidence to underwriters, thus facilitating better rates.

• Slick process with minimal hassle for financial advisers and your clients.

• Saves time and money.

• The client experiences a professional and thorough process.

• Eliminates advisers’ liability for not acquiring the best rate due to poor medical information.

Measurably better rates

In MorganAsh’s experience, this method provides better annuity rates (often significantly so) than the traditional method of an adviser completing a standard application process. There are several small differences in this method that results on average with a better annuity rate.

• Talking to a medical professional – the MorganAsh nurse – gives the consumer greater confidence to disclose full information.

• The MorganAsh nurse’s professional knowledge means they can assist the consumer in providing information they would not otherwise volunteer.

• The MorganAsh nurse is aware of the information required for longevity estimates and records this information in a manner suitable for medical underwriters to understand – translating from a layperson’s language.

• MorganAsh submits a medical report to the insurance providers which often has more information than the standard online form can accommodate.

• Because of the way MorganAsh collects and submits information, these cases are often manually underwritten. Since underwriters are aware of the rigour of the MorganAsh process, they are more inclined to trust the data – and, since it is already provided in their format, they are more inclined to give a better rate.

• Automated underwriting systems use average rates which are based on previous historic data submissions can result in suboptimal pricing. 

Under Consumer Duty, it is difficult to argue that this method should not be used for all those taking out an annuity – since, in the majority of cases, standard processes result in a less favourable outcome.

Studies of annuity rates by method

MorganAsh undertakes regular studies to verify the benefits of using the MorganAsh method of obtaining annuities quotations. The latest study was undertaken in February–May 2024. As a comparison test, 153 cases were submitted using both the standard online approach and the MorganAsh method. In each case, 2 quotations from 4 providers were obtained. The rates were recorded for each case, for the two different methods.  The results are similar to previous comparative studies, demonstrating that in-depth medical assessments consistently deliver higher annuity rates. The latest study results in detail:

• The MorganAsh method delivered a higher annuity rate by with a mean 2.5% increase.

• The percentage variation for the MorganAsh method compared to a standard form ranged from +33.2% to –3.8%.

• The mean uplift amount for this cohort was £229 per annum for the rest of their years.

• 59% delivered a positive increase over 1% higher annuity rate, while 32% provided minimal difference less than 1% difference and 9% a lower rate greater than 1% lower.

It is acknowledged that advisers have a choice when to send cases to MorganAsh; it is expected that advisers are selective when sending cases and that may affect these findings.

Downloads

• MorganAsh adviser terms of business (PDF – 123 KB)