The Association of British Insurers has unveiled its Code of Conduct to provide support for people approaching retirement.

The code will help people make informed decisions about conventional and enhanced annuities and choosing the right one for them.

It will require ABI members to provide clear communication about retirement income products so consumers can select the most appropriate product for them and highlight enhanced annuities and the value they can offer consumers.

It also wants members to encourage customers to seek advice from advisers and government-backed organisations such as the Money Advice Service and establish transparency in the annuity market.

The changes come about following consultation and research with consumers, professional bodies and members of the ABI.

Otto Thoresen, director general of the ABI, said: “Improved processes, better signposting and transparency will combine to make customers more confident and more able to make decisions about their retirement income.”

Mark Hoban MP, financial secretary to the Treasury, said: “I want to help people approaching retirement to get the best possible deal when buying an annuity. The announcement today is an impressive example of industry, consumer groups and Government working together with the ABI to deliver a package of measures that will help consumers.”

The code will be implemented by members from 1 March 2013.