Aviva has completed the first phase of a major technology overhaul of its individual annuities business as demand for guaranteed income continues to rise.
The provider has gone live with GBST’s Composer platform, which will underpin new product development and the migration of existing annuity customers.
The rollout follows a sharp resurgence in annuity sales as higher rates and increased later life risk awareness push more retirees away from drawdown.
Aviva said the new system gives it greater flexibility to launch products quickly and improve service standards for customers and advisers.
As part of the first release, Aviva has introduced a guaranteed fixed term income plan.
The firm plans to add further annuity products and move legacy customers onto the Composer system in the next stages of the programme.
Claire Reed, director of individual annuities at Aviva, said the upgrade was central to the insurer’s long term retirement strategy. “The Composer platform gives us the flexibility and security to accelerate our transformation and enhance the experience we deliver for our customers and their advisers,” she said. “This collaboration marks an important step forward in delivering innovative retirement solutions that meet the evolving needs of retirees.”
GBST said Composer will give Aviva a modern, automated operating model with stronger straight through processing, reduced friction in onboarding and greater scalability for payment processing.
The firm said the project was delivered on time and on budget.
David Simpson, head of EMEA at GBST, said the company would continue to work with Aviva as it develops its annuity range.
“Together, we can combine innovation with operational excellence to set a new standard for the annuities market,” he said.
The modernisation comes as advisers reassess decumulation strategies for clients approaching retirement.
Rising yields have driven renewed interest in guaranteed income, while Consumer Duty has increased scrutiny on suitability assessments for drawdown in later life.
