Could a fall in individual annuity sales increase bulk annuity market competition?

Commenting on the potential impact of today’s Budget on the bulk annuity market, BW, says:

“One of the surprises of today’s Budget is the scrapping of the requirement for retirees to purchase an annuity. Great news for pension savers, who now have a lot more freedom with their money, but not so great for annuity providers and insurers.  Tellingly, immediately following the news the share price of several insurers has begun to drop.

Several insurers are part of the thriving bulk annuity market, and if individual annuity sales are set to fall there may be increased competition in the bulk annuity market.  It is entirely possible that trustees looking at the prospect of a buyout or a buy-in could snare a bargain as a result.”