Research Insights: The UK Risk Settlement Market

Research Insights: The UK Risk Settlement Market

Research Insights: The UK Risk Settlement Market

Endgame Is Near — Are You Ready?

With the well-documented improvements in UK pension scheme funding levels, an increasing number of pension schemes are closer to achieving their endgame. 

For many schemes that means securing members’ benefits with an insurer via bulk annuities. However, being close to buyout — or buy-in — and achieving such a transaction are two very different things. 

To find out more about the preparation for this journey, we recently surveyed over 200 pension professionals, representing schemes ranging in size from less than £20 million to over £1 billion in liabilities.

This report collates these views and presents the findings across 4 key stages of a schemes journey to settlement:

  1. Preparation ahead of going to market
  2. Insurer selection
  3. The member experience journey
  4. Beyond buyout: understanding residual risks and the use of surplus