£1/3trn of liabilities has already been insured, covering 1.4 million members’ benefits
James Mullins says the risk transfer market has evolved and grown rapidly
Third buy-in takes scheme’s insured benefits to around half of liabilities
Bulk annuity with unnamed insurer is expected to convert to buyout soon
Headline news in 2001 is now good news for members, says James Mullins
Quieter H1 market due to busy second half last year and well-prepared schemes could benefit
The deal is the first announced by this insurer for 2021, with a focus on ‘value not volume’
Pension Insurance Corporation (PIC) concluded £5.6bn on bulk annuities in 2020 after recording just over £2.1bn in the second half of the year.
Around £1trn of pension risk could be insured by just over a decade’s time as bulk annuity volumes grow rapidly, also boosting insurers’ rankings in the FTSE 100, according to Hymans Robertson.
Fewer pension schemes are targeting self-sufficiency as their long-term objective while bulk annuity pricing improves and the consolidation market opens up.