One of the historical challenges with the fast-growing medically underwritten bulk annuity (MUBA) market has been the length of time the data-collection process can add to the tendering process.

What was reported to MorganAsh was a welcome level of quality, accuracy and reliability of data delivered to the insurers. This has led to insurers having great confidence to price on our nurse tele-interviews alone without having to wait for doctors’ reports. The quality and reliability of nurse tele-interviews have proven to reduce reliance on GP reports, thus reducing quotation turnaround times.

The reduction in GPR reports roughly cuts the duration of projects by two weeks, or around 20%.

“The receipt of high-quality data is paramount in enabling us to understand the health of individuals and it ensures there is no bias in selection. The MorganAsh interview is of high quality and reliability and we are happy to price on this basis.” Phillip Beach, head of core pension risk transfer business for Legal & General.

The appreciation in the accuracy of our nurse tele-interviews has also reduced the reliance on costly doctors’ reports (GPRs), reducing the overall costs.

Comparing 2015 to date with 2014, the number of GPRs per member across multiple projects was reduced by 28%.

“Trusted and consistently high-quality data, particularly data collected using trained healthcare professionals as part of a medically underwritten bulk annuity tender, is essential in giving reassurance to the trustees and scheme members – and also in obtaining a competitive price for the client,” said David Stewart, a partner at Lane Clark & Peacock.

MorganAsh has agreed with the insurers to continue to collect some GPRs for the higher liabilities and will collect permission to obtain the GPRs from most scheme members so that insurers and reinsurers can cross-check post-pricing. This transparency helps to remove doubt and prudence, so enabling sharper pricing.

When MorganAsh started the bulk annuity work, the company continued to use its quality processes, honed within the life insurance and individual annuity markets. The advantage being this has been understood by the insurers and reinsurers over the last 10 years. There is an interesting question of what level of quality is required, and what level of quality gives the insurers sufficient comfort to reduce prudence on the risk of incorrect information. This is something MorganAsh will no doubt review in the future.

MorganAsh has agreed processes with Aviva, Legal & General, Partnership and Just Retirement, all of whom reimburse our fees when transactions proceed. While the competitive landscape will change with the merger of Partnership and Just Retirement, from MorganAsh’s conversations with LV= it is not expected that these processes will radically change, similarly with other insurers if and when they enter the MUBA market.

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