Following its warning in August on the worrying lack of awareness regarding auto-enrolment amongst employers, Tenet is experiencing an increasing level of engagement from both employers and advisers.
However, it has underlined that urgency is still the key message due to both the average 12 month timescale and an increasing lack of capacity in the provider space.
Tenet’s group brands director, Mike O’Brien, who believes that the underwriting issue is due to many providers not perceiving the business as profitable to take on in the SME market space, said:
“Getting terms from providers is becoming ever more difficult. A lot of companies are starting at the one per cent employer, one per cent employee contribution level and many providers do not have the appetite to issue terms on these contracts. With approximately 38,000 medium-sized employers due to be staged for auto-enrolment next year, this issue will only become more acute and is another reason to not leave it too late to engage with auto-enrolment.”
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