Ruth Kelly, economic secretary to the Treasury, yesterday addressed a seminar attended by representatives of consumer groups, regulators and policy makers as well as key members of the insurance industry on the subject of annuity reform.

Forum Response: Association of British Insurers

Joanne Segars, head of pensions at the Association of British Insurers, told ePolitix.com: "The ABI is fully committed to achieving greater flexibility for the customer, while retaining the core benefits of annuities which will continue to provide valuable protection against people out living their financial resources. We were particularly pleased by the government's emphasis on the need for greater consumer education.

"There has been a significant amount of innovation in the annuities market over the last few years, offering customers more choice and greater freedom. The government, key stakeholders and the industry would like to develop this further. It is therefore important that it is made easier for people to get the information and advice they need to choose the right products according to their circumstances.

"Many of the more radical options for reform being debated at the moment would not benefit the majority of pensioners. In considering reform we need to develop solutions that help the majority, and not just a minority."