However, it has underlined that urgency is still the key message due to both the average 12 month timescale and an increasing lack of capacity in the provider space.
Tenet's group brands director, Mike O'Brien, who believes that the underwriting issue is due to many providers not perceiving the business as profitable to take on in the SME market space, said:
“Getting terms from providers is becoming ever more difficult. A lot of companies are starting at the one per cent employer, one per cent employee contribution level and many providers do not have the appetite to issue terms on these contracts. With approximately 38,000 medium-sized employers due to be staged for auto-enrolment next year, this issue will only become more acute and is another reason to not leave it too late to engage with auto-enrolment.”
In December last year the group launched Tenet Employee Benefit Solutions, specifically to enable advisers – irrespective of their level of experience – to help their corporate customers comply with the new pensions reform requirements.
O’Brien continues:
“Whilst the level of engagement is starting to increase, there are still a huge number of employers out there who need to begin the process. Time is fast running out and the growing underwriting challenge is exacerbating the issue. TEBS’ insight can help advisers place contracts though, so the message remains to act now.”
Tenet offers a three-tier options system to suit both independent and restricted advisers, where they can choose either a ‘handhold’ service for any extra support they need, or one of two comprehensive ‘handover’ options where TEBS can provide a greater level of assistance.
