By partnering with APG-daughter Inadmin is the product of Life Sight (formerly Towers Watson PPI) also within reach of smaller businesses. Life Sight piggybacks on the scale that APG provides Inadmin daughter. Annemiek Vollenbroek, director of Life Sight and Inadmin director Rik Douwes talk about their collaboration in Life Magazine Sight on 12 September.
Independent and open platform
"Last year we started to orient ourselves to a new administrator. Two criteria were top of the list of the Life Oversight Board. The administrator must be independent and provide an open platform. "Our principle is that we work together with independent parties, 'says Vollenbroek. Inadmin performs as APG daughter pension, investment and insurance administration of defined contribution (= Defined contribution, DC) for Premium Pension Institutions (PPIs), (corporate) pension funds, asset managers and insurers.
Good track record of flawless execution
The second requirement was that the contractor should be able to run the product of Life Sight immaculate and so had to have a good track record. Vollenbroek "That makes sense, but requires a lot of a performer because we have a unique concept. With us NextGenDC-investment concept, the participant will receive an investment mix that is tailored to their personal preferences and situation. That vary from employee to employee. Furthermore, the investment is in line with the investment horizon of the participant and takes into account the need to purchase a lifetime benefit to the effective date (investment purchase price oriented). Moreover, let us see what the net pension participant about expect. At that amount, we take account of inflation so that the participant will get a realistic view of his retirement income relative to its current income. "
Through the combination of these two requirements Life Sight quickly came off at Inadmin. That's not to say Life Sight board on thin ice is gone. "We have also looked at some foreign parties and examine whether Willis Towers Watson could do the performance itself. Moreover, we have asked for a second opinion to make sure we had seen no possibilities overlooked, "says Vollenbroek.
Lower costs through scale
Discussions on cooperation were initiated late last year. "The range of first contact to contract usually lasts for a year," says Rik Douwes, director of Inadmin. In the coming months the administration of Life Sight is about to Inadmin.
"We are very pleased with Sight Life as a customer," said Douwes, who founded earlier mortgage servicer Stater. "We are a subsidiary of APG and focus on others. We specialize in defined contribution. We only do the administration and communication, no other issues such as management support and asset management. The administration is not the most exciting part of a product, but should be good. It is a hygiënefactor.'
Inadmin work for multiple clients, who benefit from the economies of scale to lower costs. "This allows us to broaden our audience," says Vollenbroek. "Initially we focused only on larger companies. From now on, our product is also available for companies over 100 employees. "
Vollenbroek stresses the importance of a good performer. "The participant and the employer perceived the administration along with communication as the core of the product. I expect that the strength of our product through collaboration with Inadmin more will come forward. "
The power of Life Sight is the combination of communication and the way in which investments are tailored to the participants. "We are under staffing standard (default) lifecycle that fits that population," Vollenbroek explains. "Those default varies by company and by individual. That is unique. Other PPIs usually works with some variations of a lifecycle. "
The next step is the investment per participant. To give a good insight automated, a participant must answer some questions. "We do not want to bother participants with complicated questions about investing. Experience shows that they drop out. Therefore, we ask for the desired retirement income. Participants will issue examples of people with similar income 'says Vollenbroek. To determine the risk appetite, participants are asked how much income they need at least after retirement.
On the basis of the answers shall Life Sight uses algorithms to provide an optimal individual lifecycle fixed for the participant. "We expect thousands of scenarios and then select the scenario with the highest probability of the desired retirement given its risk posture. In this way we relieve the employer. Which need not concern themselves with individual pensions. "
Vollenbroek and Douwes expect the automated solution is further refined. 'How more data we have, the better to provide insight. If we know more about for example the ability and the mortgage goes more towards personal financial planning. Then we can offer the participant an insight to change the mix or pour in as needed to reach his retirement goal, "says Vollenbroek.
For the foreseeable future Life Sight sees through investing after retirement as an important development. "PPIs now also get the opportunity to play a role in the distribution phase. This has major consequences, 'says Vollenbroek. Participants must make choices earlier example. In that case also we want to keep it simple communication. "
On improvements to the PPI product Sight and Life Inadmin produce continuously. "Good cooperation is necessary to adapt products on time," says Vollenbroek. "We are very satisfied with the cooperation. If Inadmin promises something, it comes true. If something can not, let us know in due time. Moreover, we have set up a governance model with a high contact frequency. This contributes to the good cooperation."