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Adviser launches annuity service to boost OMO
by Jun Merrett on Feb 22, 2013 at 11:05
Lichfield-based MSG Financial has launched an annuity service to take advantage of the increasing drive to boost the open market option (OMO).
The firm has launched the Annuity Advice Service and hired medical tele-interviewing firm Morgan Ash to contact potential clients to establish whether they qualify for an enhanced annuity.
MGS principal Gareth Reynolds (pictured) said: ‘I am passionate about enhancing the take-up of the OMO and enhanced and impaired annuities. With the Association of British Insurers soon to launch its new code encouraging shopping around at retirement, I feel my offering fits well.’
The service will cost 1.3% for a standard and 2% for an enhanced annuity, with fees ranging from £600 to £2000.
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7 comments so far. Why not have your say?
PAUL WOOLLEY
Feb 22, 2013 at 13:01
Well done Gareth, but can you make a profit at those figures ?
Are they fully inclusive or do you add the fees on to the percentage ?
The article is none to clear about these points.
report thisGareth Reynolds
Feb 22, 2013 at 14:17
Hi Paul,
Thanks. Yes I can make a profit, more so when the business is direct through advertising and the website, less so when introduced as there is a referral fee payable.
I have a good process and as I outsource the medical screening, this helps on time.
The percentage is the only fee, though they are subject to a minimum of £600 and maximum of £2000, irrespective of whether the relevant percentage represents a lower of higher fee.
report thisPAUL WOOLLEY
Feb 22, 2013 at 15:18
Gareth,
Thanks for the insight,
I ask because we charge 3% regardless, min £495 and no maximum.
We use the common quotation system, (soon to go automated).
We use repeat precription forms as evidence of ailments etc.
This is about 70% of our business.
What is the medical screening all about, never used it ????
Paul@jcassociatesltd.co.uk
report thisMr Jones via mobile
Feb 24, 2013 at 09:43
3% regardless? Rip off
report thisPAUL WOOLLEY
Feb 25, 2013 at 09:31
No , it's a business model, Mr. Jones, and why hide your identity ???
report thisMrs jones via mobile
Feb 25, 2013 at 20:37
Charges 3% and doesn't know about medical screening facilities. Stick to what you know
report thisMr Jones via mobile
Feb 25, 2013 at 23:12
A rip off business model. What if your 3% regardless erodes any saving that could be made via an OMO? I would imagine it could do going by some of the rates out there.
I hide my identity because you never know who is reading...obviously.
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