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Aon Media Center

Aon’s Compass shows pension schemes the pathway to bulk annuity purchase
NYSE:AON

LONDON (15 September 2016) – Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE:AON), has launched its new Bulk Annuity Compass broking service, which helps pension schemes through the process of securing a bulk annuity.  Bulk Annuity Compass has been developed by integrating Aon Hewitt’s breadth of services and unrivalled experience in securing successful risk settlement deals with its broking platform.

John Baines, partner in Aon Hewitt’s Risk Settlement Group, said:
“During 2016, the difference in best price between different auctions has varied by as much as 10% relative to government bonds, depending on when that scheme has approached the market. Timing is critical and a carefully planned auction can therefore add significant value for both schemes and their sponsors."

Bulk Annuity Compass has been developed with this in mind, allowing a regular two way flow of information between schemes and insurers. Using Aon Hewitt’s Bulk Annuity Compass, insurers are able to review all schemes and provide refreshed pricing at any time. This means that when insurers are able to offer attractive pricing, they have a pool of cases which they can target and those schemes will be in a position to transact quickly.

John Baines continued:
"The benefits to pension schemes and their sponsors of insuring risks are increasingly clear. Aon Hewitt has been at the forefront of the bulk annuity market for many years, and has an enviable track record of guiding pension schemes through to transaction. We believe our service is the broadest in the market, including due diligence on insurers’ financial strength and administrative capabilities, using enhanced and pre-negotiated ‘Pathway’ contracts which we developed in conjunction with Eversheds LLP, and gathering medical data using our own AHEAD service.

"Schemes on our Bulk Annuity Compass platform will be in an even stronger position to take advantage of market opportunities in this environment. Bulk Annuity Compass ensures that these schemes can be firmly in the shop window, and that is vital given the resource constraints faced by insurers, and volatility of pricing.  Alongside the positioning with insurers that we provide, it means schemes can identify and swiftly take advantage of opportunities as and when they arise, rather than potentially missing them.

“Overall Bulk Annuity Compass means that schemes can access the bulk annuity market at the right time and on the right terms to achieve maximum value.”

 

Media Contact
For further information please contact:
Colin Mayes                                           Anelia Fikiina
Aon Hewitt                                             CNC
01372 733689                                         020 3219 8887
colin.mayes@aonhewitt.com                   anelia.fikiina@cnc-communications.com

 

AHEAD
Aon Hewitt's Enhanced Annuity Data Platform (AHEAD) service combines our broking expertise and due diligence service with a platform to collect medical information from members and securely and quickly transmit this to all of the relevant insurers, to obtain best pricing.
Aon Hewitt's AHEAD platform offers trustees a unique opportunity to access:
•    A one-stop shop for delivery of the full project, giving you access to a complete service and greater certainty over delivery.
•    Access to a well-known brand, giving members greater comfort.
•    A track record of outstanding response rates. With an average response rate of over 85% - over 10% better than the market average - pricing is often more accurate and has led to greater savings for trustees and sponsors.
•    An engaging suite of communications.

    

About Aon
Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage and reinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com.

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