At-Retirement software solutions for Platforms

AT-RETIREMENT SOLUTIONS FOR PLATFORMS

Platforms are facing an increasing number of challenges in 2013 and beyond.The number of Platform companies in the UK has increased from 7 in 2003 to over 30 companies in 2013. Competition has intensi�ed rapidly in the past decade, in terms of both the service o�ering and value proposition.

In 2011, the total aggregate revenue for the top 20 adviser Platforms was £710m, up from 330m in 2006. However, total expenses grew from £365m to £760m over the same period. This indicates the net £35m loss incurred in 2006 has increased to a net £50m loss in 2011. The challenges associated with the increase in competition combined with an increase in costs already experienced will be further compounded by the population demographics.

Platform Challenges in 2013 & BeyondThe UK faces the retirement of the baby boom generation. This generation has enjoyed the wealth which enabled them to invest in products provided by Platforms, both Supermarkets and Wraps. In many instances, this has driven sales away from the traditional Life and Pension product providers. Over the years, consumers have accumulated increased wealth, which has contributed to the success of the Platform market.

As this generation enters retirement, assets are being moved from Platforms into “at-retirement” decumulation products, provided by at-retirement solution providers. This will cause momentous asset drain for the Platforms, potentially forcing consolidation within the industry and endangering the future of several Platforms completely.

Platforms face losing billions of pounds of Assets Under Administration (AUA) due to not being able to service the retirement income sector su�ciently.

Platforms’ current focus lies in managing the accumulation phase of the investment journey and their expertise in building and maintaining relationships with their customers. This expertise can also be used to retain the assets for a longer period of time by maintaining the relationship through the “at-retirement” phase.

Platforms that survive will be the companies that can quickly adapt to the changing market demands. They will o�er new products and services to di�erent segments for di�erent life events, presenting a �exible proposition re�ecting customer demand.

Exaxe can facilitate the retention of assets under administration by enabling Platforms to o�er at-retirement products to their existing client base, thus increasing revenue and pro�tability.

As the baby boomers enter retirement, assets are being moved from Platforms into “at-retirement” decumulation products, provided by at-retirement solution providers.

16.6%

23.7%

13.7%20.4%

13.7%

11.8%

The pension annuity market has quadrupled in the past 15 years due to the sustained growth of the UK’s population aged 65+. Subsequently, the UK’s rapidly ageing population makes it the largest annuity market in Europe. It is time for Platforms to take advantage of this and di�erentiate themselves in a competitive market.

To move into the at-retirement space, and thus retain the assets, two key capabilities are necessary:1. An ability to maintain a relationship with clients and/or advisers2. An ability to engage with clients and/or advisers through di�erent life-stage events.

Platforms already have these capabilities and are uniquely placed to assist clients, providing them with a single view of both accumulation and decumulation. Platforms have two options available to them in order to o�er their clients on-platform at-retirement solutions.1. Platforms can create their own at-retirement investment style products and administer them internally 2. Platforms can create their own at-retirement investment style products and outsource the administration

Exaxe o�ers speed to market and e�ciency of integration combined with expertise to deliver each of these options in very short timescale.

The Solution

• Prevents assets leaving platforms to go to life companies

• 500,000 converting from pension accumulation to decumulation p.a.

• Pension annuity market has quadrupled in past 15 years

• 2010 At-retirement market = £18bn new business premium p.a.

10.3 million

8.6 million

14.8 million

UK Age Demographic

Total UK Population in 2011 = 62.3 million

• The pension annuity market is forecast to be £23bn p.a. by 2014-2015

• The UK is the largest annuity market in Europe

• Growing demand for at-retirement investment style products

• Ageing demographics

Why offer ‘At-Retirement’ Solutions?

Exaxe is a specialist at-retirement solution provider with experience and extensive knowledge that allows its clients to launch new products faster, administer post retirement products more e�ciently, and respond with greater �exibility to the marketplace.

Exaxe can o�er the full end-to-end at-retirement solution via its �agship products Illustrate Plus and Income Plus. In addition Exaxe can o�er full administration via our outsource partner Equiniti Paymaster. Equiniti Paymaster has 175 years of annuity payment experience and has a proven track record in large scale third party administration. This is combined with Exaxe’s state of the art annuity quotation and administration solution, along with its expert skill set and knowledge of the industry.

Exaxe have template at-retirement investment style products which can be con�gured to the Platform’s needs and to the markets’ needs.

Exaxe’ o�ering will integrate into the Platforms existing processes and systems. ‘Plug and Play’ integration allows Platforms to easily make at-retirement style products available on their current Platform.

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12.7 million

7.4 million

8.5 million

Who is Exaxe?Established in 1997, Exaxe is a specialist solution provider that helps life and pensions companies launch new products faster, administer post retirement products more e�ciently and respond with greater �exibility to the marketplace. With headquarters in Ireland and o�ces in the United Kingdom and the Netherlands, we provide leading edge;front, middle and back o�ce solutions speci�cally for life, pensions and wealth management sectors.

Exaxe’s component based solutions more e�ectively manage product development, channel distribution and full policy administration. Exaxe solutions are in use in a wide range of client organisations throughout Europe. Exaxe helps companies, such as MGM Advantage, Interamerican, Capita, Scottish Mutual, Eureko Group, Scottish Widows and Equiniti Paymaster.

Why Choose Exaxe?When Exaxe engages with a client, we ensure that they do not just receive a new software solution, but that they also bene�t from our in-depth industry knowledge and experience.

Exaxe provides our platform clients with:

Speed to Market Exaxe’s technology allows for unparalleled speed to market. This allows Platforms to easily launch “At-Retirement” style products available on their current Platform.

Full At-Retirement Exaxe assists Platforms to retain and increase Assets Under Administration (AUA) for an increasedSolution duration. Exaxe systems enables Platforms to access the at-retirement market.

People & Expertise Exaxe provides an excellent team of Platform specialists to their clients. These are led by:

T: +353 (0) 1 299100 E: [email protected] W: www.exaxe.com : @Exaxe

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Ralph Tucker - UK Sales DirectorRalph is UK Sales Director at Exaxe and is responsible for developing go-to-market and sales strategies, creating new business opportunities and providing greater support for existing clients in the UK. Ralph has over 18 years’ industry experience which he gained in the �nancial services, BPO and technology vendor industries. Ralph joined Exaxe from Mastek UK where he worked as Business Development Director and was responsible for setting the product and sales strategy.

Stewart Reeder - Client DirectorStewart joined Exaxe 12 years ago as Information Systems Manager and since then has grown with the company ful�lling several project and account management roles. His current role as Client Director is to engage with senior management, in new and existing accounts, and to provide an unrivalled results-based service to our clients. Stewart holds a Bachelor of Science Information Technology (BSc Hons IT) and a Masters in Business Administration (MBA).

PLUG THE LEAK! Call Stewart today on +44 (0) 7825198752 to find out how Exaxe can transform your business!