Member experience has become a defining factor in pension scheme buy-in and buyout transactions, as schemes and insurers compete to deliver smoother, more transparent retirements for members, according to research from Hymans Robertson.

The consultancy’s Buy-out and Wind-up Outlook report found that trustees are increasingly prioritising member experience from the earliest stages of their endgame journey, from market approach through to full buyout and beyond.

Hymans Robertson said that while many schemes are now in stronger funding positions, price alone is no longer the key determinant when selecting an insurer.

Instead, insurers are increasingly using the quality of their member experience to differentiate themselves in a competitive market.

“Trustees want to know their members will continue to receive first-class service once they step away,” explained Hymans Robertson head of member experience, Donna Prince.

“That means putting member experience at the heart of the broking process and ensuring continuity from scheme to insurer,” she added.

In addition, the report highlighted the benefits of early engagement with both administrators and insurers to ensure a smooth transition, warning that insufficient planning could lead to service disruptions, delays to retirement quotes, and member dissatisfaction.

This was echoed by Standard Life's research earlier this year, which found that a lack of preparedness was holding trustees back from pursuing endgame strategies

Hymans Robertson also found that insurers are investing heavily in digital tools, communication standards, and education to improve the retirement journey.

For example, many now offer online portals for members to view payslips, access documents and model retirement options, as well as policyholder events and independent advice resources.

Some insurers have even obtained Plain English accreditation for their member communications.

Beyond administration, insurers are also showing greater willingness to maintain complex scheme benefits and retirement options, such as pension increase exchange (PIE) arrangements, that were once difficult to insure.

The consultancy emphasised that trustees should weigh insurer capabilities and member service standards early in their endgame planning.

“A buyout is an irreversible transaction,” the report concluded.

“Trustees not only need to secure members’ benefits in full, but ensure their members are in safe hands and will receive the same good service trustees have worked hard to provide.”

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