Reuters- With healthy pensioners living ever longer, at a cost to the annuity industry, providers of "impaired life" annuities to smokers and the sick are carving out a rewarding niche that looks set for heady growth.
With longevity rising, extended payouts to pensioners are already a major concern for UK insurers and investors, with Prudential, Aviva and Legal & General all taking heavy charges in 2007.
But others are finding profit in the changing landscape.
The market for enhanced annuities — a higher income in retirement for those with an illness, job or lifestyle that could shorten their lives — topped 1 billion pounds for the first time in 2007. That is up 35 percent on 2006 and more than double 2001 levels, according to consultants Watson Wyatt.
