10th January 2008

AXA embarks on enhanced annuity pilot

The Enhanced Annuity proposition, offered by AXA Wealth Management, differs from a standard annuity in that the consumer is assessed on not only their age and gender, but medical and lifestyle conditions are also taken into consideration. The product aims to provide a higher income payment than a standard annuity for some people because the health of the individual is taken into account and those with a risk of lower life expectancy can gain a higher annual income from their pension fund as a result.

The pilot has been developed as part of AXA Wealth Management’s proposition to meet the requirements of the retirement market. The pilot will help identify the critical success factors and differentiation required for a full market launch.

AXA’s pilot is designed so the customer is clear on the annuity rate that they will receive. Quotes are offered with a 14 day guarantee on the rate. This element is designed so the customer has no ambiguity on the actual rate that they will receive and also supports advisers through the quote and new business stages of the process.

Commenting on the pilot, David Wade, Enhanced Annuity Product Manager, AXA Wealth Management, said: “The market for enhanced annuities is growing rapidly and it therefore represents a significant opportunity for us. By running with this pilot we are keen to test our capability and the appetite in the Enhanced Annuity market in order to confirm the attractiveness of the market and build our reputation as an innovative provider of retirement income solutions.