2019 marked another record-breaking year in the pension risk transfer market, with both volumes and transaction sizes continuing to grow. The total value of transactions completed surpassed the £40 billion mark - nearly doubling 2018’s record.

You can now download our fourth annual report below as we track the recent key changes in the pension risk transfer market, with a particular focus on bulk annuities, and look at what these could mean for your defined benefit (DB) pensions scheme.

In particular, we focus on five key areas:

1. Bulk annuity insurers overview: an update on changing market dynamics. 

   - The buy-in/buy-out market is busy, so what?
   - How we helped secure one of the largest buy-ins to date

2. The trustee perspective: how to prepare as you move along your journey plan. 

   - A simple guide to investment strategy targeting bulk annuities
   - Data cleansing: the key to a successful project

3. Regulatory update: what’s new and what this means for you. 

   - Equity Release Mortgages
   - Prudential annuity deal with Rothesay Life – what’s going on?
   - Partial buy-outs

4. Longevity risk update: the latest trends and approaches to managing longevity risk.

   - 2019 trends
   - Is the price right?
   - Longevity swap structures

5. Pension scheme demand for insuring deferred members: ways to accelerate your journey plan.

We also share insights of each insurer in this market - almost all of which have had another record-breaking year in terms of buy-in/buy-out transaction volumes.

Despite this, excellent pricing opportunities are still available for pensions schemes which is causing a continued growth in demand. As a result, some insurers are having to turn some pension schemes away. So, schemes now need to be well prepared before approaching the busy market if they want to get on the front foot. But this alone might not be enough. Pension schemes will have to have a clear broking strategy, and a good understanding of how insurance companies think and operate, to stand out from the crowd and become more attractive to insurers.

Want to know more?

Episode 2 of our Hymans Robertson On… podcast focuses on the pensions risk transfer market. Our experts, James Mullins and Michael Abramson discuss the process insurers go through when asked to quote for a transaction. Listen to the episode below. To find other ways to listen or to subscribe to our channel visit our podcast page to find out how.

How can we help?

Visit our Risk Transfer page and find out how our market-leading team can help you reach your pension scheme’s long term goal and ensure your members’ benefits aren’t left to chance.