Risk Transfer 2025 Regulatory Review and Outlook for 2026

For Pension Risk Transfer, 2025 has been a year filled with regulatory activity. Hymans Robertson has published its Risk Transfer 2025 Regulatory Review, bringing together information about the many regulatory updates throughout the year. It aims to be a useful reference for those involved with UK defined benefit pension schemes. The report, from the leading pensions and financial services consultancy, summarises the key areas of regulatory focus over the last 12 months, how pension schemes could be impacted by these areas and a look ahead to 2026.

Commenting on the review of the past year and 2026 outlook, Michael Abramson, Partner and Risk Transfer Specialist, Hymans Robertson, said: 
 
“For pension schemes who have buy-in policies or are considering using insurance at some point, the huge amount of regulatory activity this year should be of interest as it can have a bearing on both insurer pricing and security. The highlight of the year has been the PRA’s stress testing of major buy-in insurers, demonstrating the insurance sector’s resilience to major shocks, but we have also seen funded reinsurance under the regulatory spotlight.  
 
"Other areas of focus have been buy-in termination rights, which are generally only relevant for the largest pension schemes, and some changes designed to make it quicker for insurers to invest in new asset classes.
 
“Looking ahead to 2026, with the exception of stress testing, we expect no let-up in regulatory activity. The agenda: ensuring the resilience of the sector, identifying emerging risks early on, and supporting competition and innovation. Particular areas to watch are funded reinsurance, alternative life capital and Solvent Exit Planning for insurers.” 

Important information

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