Our 2023 Risk Transfer Report focuses on recent activity in the bulk annuity and wider risk transfer market. We look at the outlook for DB pension schemes approaching potential transactions and share our insights.
The research will support scheme trustees and sponsoring employers in navigating their endgame journeys. We focus on the key considerations in planning for a future transaction, highlighting the practical preparatory steps, which are instrumental in successfully delivering the endgame.
Focus on the past, present and future
The report describes how the risk transfer landscape changed in 2022 and considers the implications for 2023 and beyond. We look at:
- scheme finances – why many more schemes are now in a position to fully secure their liabilities with an insurer and what this might mean in 2023;
- insurer pricing – how this interacts with demand for transactions and the factors influencing pricing terms available for bulk annuities;
- the impact of the gilt crisis – how have the pension scheme and risk transfer market been affected six months on; and
- other transaction options – developments with emerging ‘superfunds’ and other capital-backed solutions.
Transaction readiness for schemes
The report concludes with a focus on the necessary transaction preparations for schemes. We consider:
- data and benefits governance – the importance of clarity in this area for ensuring a smooth progression from buy-in to buyout with no post-transaction ‘surprises’; and
- investments – including the crucial aspects to plan early, considering credit exposure, liquidity and hedging strategies.
DB Navigator interactive framework
Our holistic actuarial, investment and pension administration approach gives you the knowledge, structure and tools to optimise your strategy for tackling the journey towards your DB endgame.
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