Phoenix fights for annuity comparison tool inclusion

Phoenix Group, which only manages closed books of business, is campaigning to be included in online annuity comparison tools.

The with-profits life and pensions manager has no policies for sale but wants its rates ranked side by side with its peers to give policyholders the full picture.

Kevin Arnott, director of with-profits management for Phoenix Group said the firm is looking at ways it can have its guaranteed annuity rate (GAR) products included in online annuity comparison tools.

He said the public has a negative perception of GARs since the collapse of Equitable Life, and added the company is keen to ensure policyholders do not give up their GARs for the sake of shopping around.

"Shopping around is important, but policyholders might miss out on a guarantee that could be more valuable to them overall than a competing annuity product," Arnott said.

"Publishing our rates on comparison tools is problematic as they cannot be sold, but we are working on addressing this.

"Our rates are up there with the top five providers, but because they are never published, people assume our rates are poor and move their pension elsewhere."

Arnott added 99% of Phoenix's policyholders keep their policy, but said the move is part of an overall drive to improve communication with investors. In Q1 next year, Phoenix also plans to publish its annual bonus rates for the first time.

In May, Premier Retirement Solutions (PRS), the joint venture between Just Retirement and JLT Benefit Solutions, launched a direct-to-consumer enhanced annuity comparison tool on MoneyFacts.co.uk.

A week later, Just Retirement competitor Partnership unveiled a direct-to-consumer annuity panel in conjunction with advisory firm Heath Lambert.