Will a capacity crunch result in rising prices?
Risk Transfer Report 2017
08 Aug 2017 - Estimated reading time: 30 minutes
We recently issued our 2018 report which you can find here
Our 2017 Risk Transfer report covers the key trends in the bulk annuity marketing including buy-ins, buy-outs and longevity swaps. Our report covers everything you need to know about de-risking and is tailored to those managing defined benefit pension schemes and insurers.
Despite a period of massive change and uncertainty, the past 12 months have continued to see attractive pricing and ongoing competition in the bulk annuity market. Currently, supply from the insurers is coping comfortably with the demand from defined benefit (DB) pension schemes. However, over the medium term, our analysis shows that demand from pension schemes will rise – the key question is whether we will see a capacity crunch in the market resulting in rising prices.
In this report we look at the detail behind the headlines. We explore:
- Bulk annuity insurers – an update on changes we’ve seen in this market.
- Insurance company strategies – insight on strategies insurers are adopting for selling bulk annuities and what this means for trustees and sponsoring employers.
Regulation – what’s new and what does this mean for you?
Longevity – what do the latest life expectancy trends mean for risk transfer transactions?
- Demand from DB pension schemes – how is demand likely to change in the future and what does this mean for the optimal time to transact?
We also turn the spotlight on each of the insurers in the market, taking a look at the numbers behind their strategy and giving you an insight into the types of deals they’re looking for.
With many factors contributing to the evolution of the risk transfer market, it’s more important than ever that schemes understand the opportunities and risk that change represents. Preparation now will put schemes in the best possible position to capture these opportunities.
James Mullins - Hymans Robertson