Tailored risk transfer strategies, ensuring data quality and accurate benefits, for efficient and successful pension scheme transactions.
The world of risk transfer is constantly changing. New products are being developed and the market is becoming more competitive.
The cost of funding pension schemes can be volatile, as can the cost of passing benefit promises to an insurer.
How do trustees know what risks to manage and the correct time to do this?
There is not a ‘one size fits all’ solution. Our team of risk transfer specialists can help you work through the options available to agree a strategy that meets your long term aims and objectives.
Bulk insurance solutions involve transferring benefit provision risks to an insurer. Trustees can either retain payment responsibility (buy-in) or fully transfer it (buy-out), discharging their fiduciary duty.
A scheme’s endgame journey may encompass several risk transfer options. It may even include run on. Unlikely to be a linear route trustees should explore all opportunities and solutions to build a robust endgame strategy.
Consolidators, or superfunds, are emerging in the UK pensions sector. They assume member benefit payment responsibilities similar to insurers, but at a reduced cost. Transaction eligibility is currently restricted.
We have a strong track record of efficiently managed transactions and it is important that plans are robust and that conversations involve risk transfer specialists from an early stage.
The foundation of a successful risk transfer transaction is quality data. We have one of the strongest data teams in the UK and, through our work in transferring schemes to the PPF, we are well placed to get scheme data transaction ready.
We audit the benefits in payment, and those due to be paid to ensure the correct benefits are secured. This reduces the risk of future claims and makes the data cleanse process with the insurer very efficient. We work with the scheme legal advisor to agree the correct scheme benefits, and audit calculations on this basis.
We use a combined administration and actuarial platform, allowing us to track insurer pricing estimates in real-time. This creates efficiency, and results in better decision making.
You will be assigned a lead risk transfer specialist who will take responsibility for your journey plan, from approaching the market through to transaction, and potentially wind-up, if this is the ultimate goal.
Navigating the risk transfer market requires early specialist involvement to create robust plans and successful outcomes.
We offer bespoke solutions, including traditional insurance, capital-backed options, and emerging consolidators, to meet your long-term objectives.
