MorganAsh has enriched its MARS vulnerability software with a new triage service aimed at assisting financial advisers in identifying the right time to obtain an annuity quotation for a client. The update uses health data previously gathered for the vulnerability assessment and suggests the probability of an enhancement, whether marginal or substantial.
The MorganAsh Resilience System, or MARS, then provides guidance on the best course of action. It determines whether an online health assessment would suffice or if a more comprehensive medical evaluation by a MorganAsh nurse would yield a better rate for the client.
MorganAsh has conducted medical assessments via nurse tele-interviews for the past 13 years. Recent studies reaffirm previous findings that nurse-led medical assessments result in superior annuity rates for retirees with significant health issues, as compared to online form completion.
Pension annuities have seen a resurgence in recent months as rising interest rates promise improved returns. A study by the Association of British Insurers (ABI) discovered that sales spiked by 22% in the first quarter of 2023, hitting the highest level in nearly five years. However, MorganAsh emphasizes that advisers’ failure to consider an enhanced annuity at an annual review or evaluate the client’s health likely fails to meet Consumer Duty obligations.
The dilemma lies in determining when a client’s health will substantially impact the annuity rate. As all annuities undergo underwriting, an annuity quotation should ideally be obtained for each retiree annually. But with annuity quotes often taking weeks to be returned and detailed health assessments necessary, many advisers are seeking a more practical approach to triaging quotation needs.
Andrew Gething (pictured), managing director of MorganAsh, said: “By incorporating this triage directly within MARS, we have removed this risk for the adviser. This should ensure that all retirees are presented with a reflective and accurate annuity quotation which they can compare against the drawdown option.”
MorganAsh believes that using the health data for other products with a health or longevity component can enhance efficiency. They view it as an opportunity to extend services to previously underserved areas.
The annuity triage is one of many next steps – termed “treatments” – suggested to users based on the vulnerability assessment data. It forms part of a comprehensive suite of treatments within MARS, allowing users to select in accordance with their vulnerability strategy and risk appetite.
In addition to the annuity service, MorganAsh has also integrated a triage service to aid mortgage advisers in identifying and evaluating the protection needs of their clients. MARS uses the health data gathered during the vulnerability assessment to gauge the prospects of life, critical illness, and income protection. It will then assess suitability, provide a rating, and recommend the optimal path forward – whether online or via a designated protection specialist.
