Almost half of pension schemes are deterred from undertaking data improvement projects as a result of the perceived costs, ITM has found.

Speaking at today’s ITM seminar with Pensions Age, Weathering the perfect data storm, ITM director Maurice Titley and independent consultant Lesley Davie outlined the importance of data improvement and governance.

The ITM speakers noted that by following key objectives, data improvement projects can essentially be made to pay for themselves. These include schemes and trustees having cost saving objectives, a clear scope and timeline, maximising the use of technology and having actively engaged sponsors, Titley said.

Similarly, also presenting at the conference, Legal & General head of client services Dave Poulton and business development director Frankie Borrell confirmed ITM’s finding regarding schemes being deterred from data improvement projects. Borrell mentioned that schemes lose out from initiating a buy-out as they are concerned about the need for perfect data.

Instead, Borrell stated that “sufficient data is required, but it doesn’t need to be perfect for bulk annuity transactions.” Nonetheless it was broadly agreed in a number of areas, including for insurer interest, that data, and so schemes, are judged by their data quality.

It was also advised by ITM that a successful strategy would involve schemes defining what cleanse work is required, agreeing on rules to apply where data is poor and defining member who need to be prioritised.

Concluding, Titley stated “even when cost is not the key driver [of a data improvement project] cost savings follow.”

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