Aviva provides individual solutions to meet the needs of most defined benefit pension schemes, from under £1 million to more than £500 million.
Our solutions are tailored to the needs of each scheme we work with. We’re happy to provide annuity policies which cover just some of the pension scheme liabilities (buy-ins), as well as helping companies who want to fully remove responsibility for paying pension incomes to their scheme’s members (buyouts). Many schemes who transact buy-ins with Aviva go onto secure further liabilities with us to move towards the end goal of a full buyout.
Operating in the BPA market since 2006, Aviva has now helped de-risk over 380 schemes, covering over £5 billion of liability. We write business in all of the UK, now including Isle of Man, Jersey and Guernsey.
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Medical underwriting offers a way for trustees to receive a more accurate quotation for their scheme liabilities. The medical underwriting of pension schemes is not a new bulk purchase annuity product, it's just a development of the standard product with some additional data to be collected.
We at Aviva have written bulk purchase annuities taking into account individual medical data which is an extension of our capabilities in the individual annuity market.
It’s important to note that the premium of a medically underwritten scheme could be higher or lower than a traditional BPA approach, where individual medical information is not collected.
For this reason, collecting medical information may be a good option for trustees who have found the traditional BPA route unaffordable – or know that their members are in worse health than an insurer would assume. Our experts already use a wide range of information, such as postcode, wealth and occupation, when assessing the longevity of pension scheme members, so if the scheme has a large number of members then trustees may find it hard to be certain of the level of their members health.