Muted volumes in Risk Transfer Market during H1 2025, but member experience and insurer capacity come into sharper focus

• 161 deals transacted in the first half of 2025, with a total value of £9.8bn

• Small scheme activity continues to grow, supported by competitive pricing and broader insurer participation 

• Member experience is a key selection theme for Trustees

The first half of 2025 saw muted volumes in the DB pension scheme risk transfer market, says Hymans Robertson. Transaction volumes of £9.8bn are the lowest first half volumes since 2021 but volumes in the second half are already catching up. In spite of lower volumes, levels of activity remained vibrant as smaller scheme transactions came to the fore. 139 deals were transacted between 1 January and 30 June 2025 for schemes £100m or below in size, the analysis from the leading pensions and financial services consultancy reveals. As a result, the market has opened up to a wider range of schemes, with more streamlined processes helping to speed up transactions.

A growing emphasis on pension scheme members’ experience has also been evident in the first half of the year. With many schemes preparing to move from buy-in to buy-out, trustees are placing greater focus on how members are supported through the transition. Strong funding positions and broader insurer choice mean schemes are no longer driven solely by price. Instead, they are demanding tailored benefit structures, digital engagement tools and continuity of service that match or exceed current standards.

Commenting on the findings from the H1 2025 report, Lara Desay, Head of Risk Transfer, Hymans Robertson, said:

“The first half of 2025 has shown that the risk transfer market remains resilient. While volumes have been lower, the level of engagement, particularly among smaller schemes, has been encouraging, and pricing has remained highly competitive. There’s been continued innovation and competition in the risk transfer space, with new entrants and evolving deal structures helping to meet demand.

“What’s clear is that member experience is now front and centre. Schemes are rightly prioritising how members are supported through the buy-out journey, and insurers are responding with more innovative and service-led approaches. We’re seeing a shift in expectations, where schemes are looking beyond transaction execution and focusing on long-term service quality and member outcomes. As the market matures, member-centricity and operational resilience will be key to successful transactions in the remainder of 2025 and beyond.

“The market’s momentum in the second half of 2025 reflects not just sustained demand from pension schemes, but also a clear step-change in insurer capacity. This is enabling trustees to prioritise member outcomes and demanding more tailored benefit structures, better digital engagement, and continuity of service. At the same time, innovation in alternative risk transfer is expanding the toolkit for schemes of all sizes. This offers new ways to secure long-term member security without compromising on governance or standards.

“Looking ahead, we expect the second half of 2025 to be particularly active. Several large transactions have already completed since 30 June, and the pipeline is strong. The market is evolving quickly, and schemes that engage early, prepare thoroughly, and prioritise member outcomes will be best placed to secure successful deals in an increasingly competitive environment.”