Risk Settlement Solutions

DB pension schemes are increasingly looking to measure and manage their risk exposure. Settlement solutions including buy-outs, buy-ins and longevity swaps are key risk management tools that can be used in achieving Pensions Stability.

For an overview of the current settlement market, download a free copy of our '2015 Risk Settlement Market Review' by clicking on the image below:

Longevity Hedging:

Longevity risk has traditionally been understated, with projected life expectancy systematically under-estimated. Aon Hewitt can help you to quantify and explain longevity risk, put this in the context of wider (e.g. investment) risks, and then explore opportunities to help you manage this risk, whatever your scheme size.

As the recognised industry leaders in the longevity risk management space, we can help you to decide whether hedging this risk, in isolation, or alongside financial risks, should be a priority - and if so we can select and implement the hedging solution which makes most strategic and financial sense for you.

Bulk Annuities:

We advise on all or any stages of decommissioning or de-risking liabilities, from feasibility through to execution, including:

• Initial feasibility review
• Market price monitoring
• Planning towards transaction
• Medically underwritten annuities
• Provider due diligence, covering financial strength and administration capability
• Full/partial pensioner buy-in
• Full buy-out and wind-up
• Post-transaction monitoring services
• Second opinion advice

We pride ourselves in advising on what's best for our clients and have repeatedly demonstrated our focus on negotiations saves money for our clients.

We have recently launched several innovative solutions for transacting annuities quickly and efficiently when the time is right; please see our brochures below. These services have been built using our substantial experience and the strong links with providers that we have in all parts of the settlement markets.

Pathway - streamlined bulk annuity service:

Our streamlined but comprehensive bulk annuity offering, including enhanced pre-negotiated contracts in conjunction with leading legal firm Eversheds LLP, and full provider due diligence, with fixed fees and a tightly defined process to control costs.

Implemented Annuities - the complete delegated solution:

Our new Implemented Annuities solution enables the assets we manage for clients via our DCS fiduciary management service to transition through the whole de-risking journey to annuities. It is a delegated service designed to make the annuity broking process as easy as possible.

AHEAD - all of the services needed for medically underwritten annuities

Our AHEAD service combines our broking expertise and due diligence service with a platform to collect medical information from members and securely and quickly transmit this to all of the relevant insurers, to obtain best pricing.

For more information on how we can help you to manage risk, please contact your usual Aon Hewitt contact or one of the Risk Settlement Group contacts below:

Martin Bird - 0207 086 9027
Dominic Grimley - 0121 262 5094
Paul Belok - 0207 086 8089

 

Aon Solutions UK Limited is authorised and regulated by the Financial Conduct Authority.