Areas where we are taking action:

Actions to be taken following this year's results:

The difficult economic conditions of 2009 had some impact on the scores that both we and the industry have experienced in this year's Customer Impact Survey.

This Survey has shown that, disappointingly, the scores from our existing pension customers have declined in respect of how their policy is performing; and our on-going relationship with them. This is a focus for us in 2010 with a number of new initiatives currently being introduced including:

• A new style of communication
• 1. Yearly statements
  We've made changes to our yearly statements to make them clearer and let our customers know about options that are available at the most relevant time to them. For example on pension statements: if you've got some way to go before retiring we have information about paying more money into your pension and the different ways you can do this. If you're nearing retirement, or wish to retire early, we provide you with details on how to do this and give you a number to call for further information
  
• 2. With-Profits Bonus communication
  We know that all the speculation in the press about this type of policy sometimes can be worrying and confusing for our customers. So we've provided clear, detailed information about how our Fund is performing and what impact this has on their policies
  
• Trying different methods of communicating
  The internet is fast becoming a key way in which our customers are finding out about what we offer and the benefits to them. We know that coming up to retirement can be stressful which is why we've created a new section on pru.co.uk that takes you through each stage of thinking about retiring. This includes:
  • a Guide to Annuities
  • an interactive questionnaire to help you find the right annuity for you
  • a calculator so you can see approx. how much you could get each month from your pension
  • finally an easy way to get a free, no obligation quote.
    

Completed actions which also feature in this year's Survey results:

Over the past year, we've also made a number of improvements as a result of other customer feedback that we actively seek. These were launched after this Survey took place so we hope to see an improvement in the positive scores next year. Below are two examples where planned changes have already been made to processes in order to improve our customers' experience:

• 1. For our pension customers who are converting their pension savings into an annuity:
• Improvement to Annuity quotes to make them clearer and easier to complete
• Improvement to retirement packs to make it easier for customers to understand all their options at retirement
• Use of electronic verification of documents instead of customers needing to post certificates
• We're founder members of the 'Options' initiative implemented by the Association of British Insurers. As more and more pension providers are now joining this scheme, it is successfully speeding up the process of transferring pension funds to annuity providers; making it quicker for our customers to start receiving their retirement income
• 2. In the Survey, we found that falls in customers' satisfaction on recent investment bond maturities or withdrawals focused around the speed and simplicity of the payment process. We've made a number of improvements that will help to improve these scores next year:
• Ensure that all requests for surrender or withdrawal forms are sent out by first class post
• Increasing the use of email to send forms to customers where appropriate
• Simplify and clearly explain the timescales and steps involved when customers request money from their investments

Update on last year's Survey actions

• 1. We researched our new, clearer literature with customers - this revised literature was launched in late 2009. We took this a stage further and have improved the information that we send 6 months before they're due to take an annuity.
  
  
• 2. Our Income Choice Annuity was launched in early 2009 and pays a regular income for life, with the added freedom of being able to select a starting income from within a range we give our customers.
• 3. In October we held a 'Think Customer Day'. This highlighted the different issues that customer face at retirement and how we can meet those needs; with different financial options and services that we offer.
• 4. Since last year's report we have sought views from over 2000 members on over 150 topics ranging from development of new financial options to general views on retirement and the impact of the general election.