Auto-enrolment switching enquiries jump 80%

Data from the insurer has shown an 80% year-on-year¹ increase in enquiries from small and medium sized businesses (SMEs) or their advisers about moving to a new auto-enrolment (AE) workplace pension provider.

Aviva’s figures have also shown the vast majority of switching enquiries are still coming via advisers. However, during the last 12 months there has been an increase in the number of businesses making enquiries themselves.

The Secondary AE Market

The ‘primary market’ for auto enrolment started in 2012 when AE was first introduced and adopted by large businesses. 

Over the course of the next six years, businesses of all sizes were given staging dates – the date by which they needed to have a workplace pension on offer to their employees.

That process ended in early 2018 as all existing businesses had been through the process. Now, any new company setting up has up to six weeks from when they take on their first employee to get their AE scheme in place.

Many SMEs have now had their schemes for a number of years, providing them with time to assess if it is delivering what they require. This has led to a ‘secondary market’ where businesses are looking to potentially change their AE pension provider. This secondary market is being fuelled by those companies and their advisers who are now looking around to see what else is available.

Malcolm Goodwin, Head of Workplace Savings & Retirement at Aviva, said:

“When AE was first introduced some businesses will have viewed it as a hassle - something to just get done and out of the way. But since then, some of those businesses will have seen major expansion or may have changed their view on the importance of workplace benefits.

“Whatever the reason, we are seeing a major increase in the number of enquiries from businesses and their advisers who are realising they have the freedom to switch if they aren’t happy with their current provider.”

“So far we have seen enquiries rise by 80% during the last 12 months. We expect that figure to continue to grow.”

_{¹12 months to September 2018}

Notes to editors:

• Aviva provides life insurance, general insurance, health insurance and asset management to 33 million customers.
• In the UK we are the leading insurer serving one in every four households and have strong businesses in selected markets in Europe, Asia and Canada. Our shares are listed on the London Stock Exchange and we are a member of the FTSE100 index.  
• Aviva’s asset management business, Aviva Investors, provides asset management services to both Aviva and external clients, and currently manages over £350 billion in assets. Total group assets under management at the Aviva group are £490 billion.
• Aviva helps people save for the future and manage the risks of everyday life; in 2017, we paid out 98% of all our claims across all our markets and insurance products. We paid £34.6 billion in benefits and claims in 2017.
• By serving our customers well, we are building a business which is strong and sustainable, which our people are proud to work for, and which makes a positive contribution to society.
• The Aviva newsroom at www.aviva.com/newsroom includes links to our image library, research reports and our news release archive.
• For an introduction to what we do and how we do it, please click here www.aviva.com/about-us
• Follow us on twitter: www.twitter.com/avivaplc/
• Follow us on LinkedIn: www.linkedin.com/company/aviva-plc
• For the latest corporate films from around our business, subscribe to our YouTube channel: www.youtube.com/user/aviva
• We have a Globelynx system for broadcast interviews. Please contact the Press Officer noted above if you would like to make a booking.