Publication

Risk Transfer Report 2020

30 January 2020

5 min

Author

James Mullins

Partner & Head of Risk Transfer Solutions

Your annual overview and analysis of the Risk Transfer market

2020 Risk Transfer Report

2019 marked another record-breaking year in the pension risk transfer market, with both volumes and transaction sizes continuing to grow. The total value of transactions completed surpassed the £40 billion mark - nearly doubling 2018’s record.

In our fourth annual report we track the recent key changes in the pension risk transfer market, with a particular focus on bulk annuities, and look at what these could mean for your defined benefit (DB) pensions scheme. We focus on five key areas:

Bulk annuity insurers overview: an update on changing market dynamics.
The trustee perspective: how to prepare as you move along your journey plan.
Regulatory update: what’s new and what this means for you.
Longevity risk update: the latest trends and approaches to managing longevity risk.
Pension scheme demand for insuring deferred members: ways to accelerate your journey plan.

We also share insights of each insurer in this market - almost all of which have had another record-breaking year in terms of buy-in/buy-out transaction volumes.

Despite this, excellent pricing opportunities are still available for pensions schemes which is causing a continued growth in demand. As a result, some insurers are having to turn some pension schemes away. So, schemes now need to be well prepared before approaching the busy market if they want to get on the front foot. But this alone might not be enough. Pension schemes will have to have a clear broking strategy, and a good understanding of how insurance companies think and operate, to stand out from the crowd and become more attractive to insurers.