A record breaking year for bulk annuity transactions
Risk Transfer Report 2018
13 Nov 2018 - Estimated reading time: 15 minutes
Our third annual Risk Transfer report tracks the key changes in the bulk annuity market and takes a look at what these changes could mean for your defined benefit pension scheme. We share our insights into the trends for the coming year and beyond and take a look at the implications for schemes looking to capture opportunities to transfer risk to insurance companies.
2018 has been a record breaking year for bulk annuity transactions with each of the eight insurers active in this market also expected to have had their record year for transaction volumes.
This is the first year where demand from pension schemes to complete buy-ins and buy-outs has outstripped supply from insurance companies. Insurers can now be more selective about which schemes they focus their efforts on and to which they offer their best pricing. As a result, there is a queue forming and you have to be in the best possible position to stand out from the crowd.
In this year’s report we focus on the following areas:
- Bulk annuity insurers overview – an update on key factors affecting insurance companies.
- The trustee perspective – trustee views on the risk transfer market.
- Regulatory update – what’s new and what this means for you.
- Longevity risk update – what the latest life expectancy trends mean for risk transfer transactions.
- Demand from DB pension schemes – important considerations from the pension scheme perspective.
Additionally, an overview of how transaction volumes have changed since the market took off in 2007 is provided as well as key details on each insurer and how they are positioned in the market.
We hope you find the report insightful and is useful whatever your de-risking objectives. If you have any questions regarding anything covered in the report, please don't hesitate to get in touch.