Customer service is an indicator of PRT transaction success

The experience annuitants will receive after a transaction closes has become an increasingly bigger consideration for plan sponsors

The U.S. pension risk transfer (PRT) market generated more than $45 billion in annual transaction volumes over the past three years. While price, financial strength and execution capabilities remain fundamental to executing a transaction, plan sponsors and their advisors must also consider what happens after the financial transaction is complete. The criteria used for evaluating a PRT provider has become more stringent as the responsibility of serving annuitants with positive customer experiences has emerged into a core focus.

Before the PRT transaction, participants may have spent decades looking to their employer or their benefits administrator for information. Following a buyout transaction, the insurer becomes responsible for administering benefits and supporting annuitants on an ongoing basis. That transition makes quality service a critical consideration – not just a post-sale responsibility.

InsuranceERM describes customer service as foundational to the PRT value proposition – alongside financial strength, pricing and operational execution. Its analysis also notes that plan sponsors and fiduciaries want confidence that their members will be effectively supported both during the transition and in the decades afterward.

The implication for plan sponsors is important: the participant experience should be considered before an insurer is selected, not after a transaction has been completed.

The criteria for plan sponsors to consider can include questions such as:

• How the insurer administers benefits
• How customer service is staffed
• How associates are prepared for the specifics of an individual plan
• How participant feedback is captured
• How digital capabilities complement human support.

The transition period sets the standard

The period immediately surrounding a PRT transition can be one of the most important stages of the customer journey. For many participants, onboarding represents their first direct interaction with the insurer. Clear communication and effective handling of participant questions during this period help to establish confidence in the new provider.

The challenge is that no two pension plans are identical. Plans may contain benefit provisions accumulated over decades, with differences based on retirement dates, vesting status, years of service or other plan-specific factors. Incomplete participant data can introduce another layer of administrative complexity.

A strong service model therefore needs to combine standardized processes with plan-specific expertise. At the Banner Life family of companies, for example, customer service associates receive transaction-specific training before a plan transitions to its administration. The objective is to give the representatives who will interact with annuitants an understanding of the plan’s unique characteristics before they begin fielding participant questions.

We also work with plan sponsors to align communications and proactively explain changes to participants. The goal is to mitigate complexity from the annuitant’s perspective even when significant work is occurring behind the scenes.

The process should place resolution at the center

While timely service is important in customer service, a successful interaction should ultimately be measured by whether the issue is resolved accurately. At Banner Life family of companies, success for our phone associates is measured by taking the time needed to truly listen to our annuitants’ needs. The service model should provide phone associates with adequate time to understand the customer needs and resolve the issue at hand – an approach that also recognizes the human element in demonstrating strong customer service. Annuitants may be navigating beneficiary changes, tax questions, payment issues or significant life events.

Technology should remove friction, yet preserve human expertise

Technology introduces another important consideration for PRT providers. The assumption that older annuitants universally prefer traditional service channels is becoming less reliable. Banner Life family of companies has observed increasing comfort with technology among its annuitants, including interest in online access to benefits and the ability to update information outside traditional service hours.
Determining which tasks benefit from automation and which benefit from customer service interaction can allow subject-matter experts to devote more attention to issues that are unique to a particular plan or annuitant.

The objective should not simply be fewer calls or more digital interactions. It should be reducing friction while giving annuitants an appropriate choice of how and when they interact with their provider. These considerations become particularly relevant as PRT transactions grow more complex and plan sponsors have more insurers from which to choose. As the market matures, the definition of a successful transaction should extend beyond the transition period, so customers continue receiving the support and service they need.

CN09292026-1