30 April 2026
5 min
On 29 April 2026, the Prudential Regulation Authority (PRA) proposed sweeping changes regarding the use of funded reinsurance in the bulk purchase annuity market.
The PRA has been exploring risks associated with funded reinsurance for some time, and in the Life Insurance Stress Test exercise conducted in 2025, they included a particular scenario focused on these risks.
In this update, we take a closer look at what was outlined in the consultation, and what it means for pension schemes considering buy-in, as well as for pension schemes and sponsors considering captive insurance structures.
If you have any questions or would like to discuss further, please get in touch.
This communication has been compiled by Hymans Robertson LLP® (HR) as a general information summary and is based on its understanding of events as at the date of publication, which may be subject to change. It is not to be relied upon for investment or financial decisions and is not a substitute for professional advice (including for legal, investment or tax advice) on specific circumstances. HR accepts no liability for errors or omissions or reliance on any statement or opinion. Where we have relied upon data provided by third parties, reasonable care has been taken to assess its accuracy however we provide no guarantee and accept no liability in respect of any errors made by any third party.
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