Zurich is alleged to be tendering a contract to replace Prudential for it’s “single tied annuity-outsourcing contract”, according to the website Money Marketing. The company had been sending maturing pension customers to the Pru for a number of years. Some believe that the Prudential have to pay around 3% commission for this arrangement. Royal London are another company who have been in partnership with Zurich with regard to annuities.
Skandia also has a similar arrangement where it sends customers to Legal & General for pension annuities. but the company is reportedly trying to increase the number of companies it offers leads to, especially for enhanced annuities. Other major insurers, including Canada Life and Aviva are also believed to be seeking more business in this market.
A spokesperson for Zurich said that customers could either take a Zurich annuity or if more suitable, a Prudential annuity via the special partnership. On top of this they had the option of using the open market option.
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