Customer service in the bulk annuity market is essential because we are dealing with people’s financial security - often the lifeline for their retirement. Many policyholders rely on their pensions as their primary income, so the accuracy, reliability, and responsiveness of their pension provider directly impacts their quality of life.
Beyond that, trustees who oversee pension schemes want assurance that their members will be well cared for after a bulk annuity transaction. While pricing is often a dominant factor, trustees also place immense value on the customer experience. They want to know their members will be looked after properly, which makes service quality a key differentiator in securing business. This makes customer service not just a function, but our social and ethical responsibility and so is a central part of how we operate.
Q: Has there been a shift in customer expectations post-COVID?
Yes, absolutely. Across all sectors, customer expectations have evolved, and businesses are driven by a broader reliance on technology, automation, and the desire for quick interactions. However, there is rightly a significant backlash from customers against over-automation, as it creates a disconnect from real personal human interaction. For pensioners, in particular - who are typically older - personal, empathetic support is crucial.
Many companies have also become overly focused on driving cost efficiencies through automation, and customer satisfaction has declined as a result. At PIC, we take a different approach. We believe that in order to deliver the best outcomes, it’s critical to keep a human touch. Our customers deserve to be treated as individuals - with care and understanding, especially since they depend on us to manage their pensions for life.
Q: How does PIC ensure its customer service stands out?
At PIC, customer service is a core part of our company ethos, not just a department or function. Our service model is built around five key pillars:
1. We pay the right amount, at the right time, every time. This is fundamental - our policyholders must be able to rely on timely, accurate payments.
2. We’re easy to do business with. We offer multiple communication channels, from traditional post and phone calls to webchat and digital portals, giving policyholders choice and flexibility. Importantly, we don’t use automated phone systems. Every call is answered by a trained team member in the UK who can offer personalised assistance immediately.
3. We’re responsive. With market-leading Key Performance Indicators (focussed on quality as well as speed) and a freephone number that gets straight through to a member of our team, our policyholders never have to navigate complex automated systems.
4. We talk with clarity. Communication is key, and we work hard to help make sure our policyholders fully understand their pension benefits. The Plain English Campaign has given us platinum status for clarity and accessibility in our communications to policyholders. Good quality information helps our customers make well-informed decisions.
5. We deliver on our promises. We pride ourselves on doing what we say we will do, and we believe that consistently keeping our promises builds long-term trust.
Q: How does customer service impact PIC’s ability to win new business?
While price remains important in the bulk annuity market, customer service is increasingly becoming the deciding factor. Many trustees feel a deep sense of responsibility that their members will be treated well, and they are willing to place business with a provider that prioritises care, even if it isn’t the cheapest option. This has been the case in several deals we’ve won - trustees choose PIC because of our reputation for outstanding service, even when our bid wasn’t the lowest.
Good customer service also builds trust, which is fundamental to our reputation and long-term success. Without that trust, it’s difficult for any company to thrive, particularly in a market as sensitive and complex as pensions.
Q: What role does customer service play in regulatory compliance?
The introduction of new regulations, such as the Financial Conduct Authority’s (FCA) Consumer Duty, has placed even greater emphasis on customer outcomes across the financial services sector. Insurers are now required to demonstrate not only that they meet basic compliance requirements, but that they deliver tangible, positive outcomes for policyholders.
At PIC, we have always had this focus and our service model goes hand-in-hand with this regulatory shift. We’ve prioritised delivering great customer outcomes to our policyholders - whether it’s the reassurance of timely, accurate payments or the ability to speak to a real person when they have questions or concerns. We also continuously invest in improving our service. For example, we’ve introduced voice analytics technology, which helps us identify potential indicators for when customers might need some extra support based on the tone and sentiment of their calls. This allows us to offer proactive assistance, particularly to more vulnerable customers.
Q: How do you ensure PIC’s service model remains effective as customer needs evolve?
Customer needs are constantly evolving, driven by technological advances, changing expectations, and the demographic of our policyholders. We’ve seen a rise in demand for digital channels, but we also know that many of our customers still prefer traditional forms of communication, such as phone or post.
To stay ahead of these shifts, we focus on flexibility. We allow policyholders to choose the communication channels they’re most comfortable with. We also stay close to our customers by hosting Policyholder Events, to build a PIC community and sense of belonging, where they can meet us in person and share their thoughts and concerns about what matters to them. These events help us keep our service relevant and responsive to real customer needs.
We also recognise the importance of investing in our people. You can train someone to do a job, but you can’t train them to care. At PIC, we focus on hiring and retaining people who are not only skilled but also passionate about delivering excellent service.
Q: What impact does good customer service have on PIC’s brand and reputation?
Trust takes years to build and can be easily lost, which is why we treat every customer interaction as an opportunity to strengthen our customer bond and reputation. We believe that a trusted brand is built by consistently delivering on promises over time. That’s why we have made our service performance transparent - we publish our complaint and policyholder satisfaction numbers on our corporate website and in our Annual Report and Accounts.
We also believe in treating our policyholders as individuals - the way we would want our own family members to be treated. That principle guides every decision we make, and it’s been key to the recognition we’ve received - such as our ServiceMark with Distinction from the Institute of Customer Service (one of only 22 companies in the UK across all sectors to hold this) and being recognised as one of the top performing customer service providers in the country. We also very proud to be the first pension insurance provider and one of very few UK companies to be ISO certified for accessible and inclusive service to customers with vulnerable circumstances. This ISO gold standard and the BSI Kitemark for inclusive service (BS ISO 22458) demonstrates that PIC is providing customer service to policyholders who need additional support at a recognised international standard.
Q: What message would you like to share during National Customer Service Week?
National Customer Service Week is a chance to reflect and raise awareness of the importance of customer care, not just in our industry but across all sectors. In the pensions market, we’re not just managing numbers or portfolios - we’re managing and impacting people’s lives.
At PIC, we believe that exceptional customer service is our moral duty. It is the foundation of trust, and trust is what will enable us to continue supporting our policyholders over the long term. As we celebrate this week, I hope that we all take a moment to remember the critical role that customer service plays in creating positive outcomes for both policyholders and trustees. It’s a responsibility we take seriously, and it’s what drives us to continuously improve.
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