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Publication

Exploring the alternative risk transfer market

A closer look at capital backed journey plans

18 May 2022

Iain  Pearce

by Iain Pearce
Head of Alternative Risk Transfer

Subject: Consolidation, Defined benefit pensions, Risk management & de-risking

Audiences: Employers, Trustees

The next in our series of publications shedding further light on the alternative risk transfer market is focussed on capital backed journey plans (“CBJP"), which are now being offered by a range of providers (although only one transaction is in the public domain).

Within this paper we shine a light on how these operate by looking at:

  • What is a capital backed journey plan and how do they work?
  • How do the capital providers achieve a return?
  • Recommended decision-making framework
  • Due diligence process for CBJPs
  • How to assess capital adequacy
  • When CBJPs can be particularly attractive

There are a number of providers who have a CBJP offering and are either actively promoting them or quietly targeting specific schemes where a CBJP could help. To support these endeavours, investors have committed significant financial and non-financial resources to build and grow this market.

If you would like us to take a ‘closer look’ at your own situation or learn more about CBJPs, please get in touch.

You can access the report by filling in your details below. If the form doesn't load, click here.

Download our paper

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