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Risk Settlement
Navigating risk reduction for schemes of all shapes and sizes
With endgame targets becoming more achievable and timescales to buyout are reducing, trustees and sponsors should act now to ensure they are fully prepared to take their next step and avoid the regret risk of missed opportunities by delaying action.
Martin Bird, Head of Risk Settlement
Choosing the best strategy can prove challenging but we are here to help. We have the largest team of risk settlement specialists in the UK, meaning our expertise and breadth of experience is unrivalled in the market. As such, we have been entrusted to act as lead adviser on around 40% of all risk settlement deals since 2019, which include both bulk annuities and longevity swaps, across a range of scheme sizes from £1M to several £Bn. With a range of expertise at our fingertips, we can provide complete solutions to schemes, including member options exercises, investment advice and due diligence services.
Our Journey to Settlement service enables trustees and sponsors to collaborate in establishing a joined-up strategy and document a plan of action over the coming years. By co-ordinating the multiple workstreams, we aim to deliver a smooth and stable journey to your endgame resulting in improved outcomes to trustees, sponsors and crucially your members.
If you are new to pension scheme de-risking, our guide will take you through the step-by-step process, explaining what it means to take longevity and demographic risks out of a defined benefit pension schemes. The guide also includes highlights from our exclusive research on the impact that behavioural biases have when addressing pension scheme risk. Being aware of these makes it easier to navigate the best de-risking route for your scheme.
Our key bulk annuity services:
- Pathway – Market leading solution for smaller schemes. Pre-negotiated contract terms in place, offered in conjunction with legal experts Eversheds Sutherland LLP. Pathway is designed to help smaller schemes engage with insurers and bring enhanced terms and accelerated transaction timing
- Aon Buyout & Wind-up Services – Completing a settlement transaction does not mark the end of a scheme’s life. Aon’s Buyout & Wind-up Services ensures schemes can achieve efficient wind-up and minimise risks to you and your members.
- Demographic Horizons – Our specialist toolkit providing pension schemes, insurers and reinsurers with a comprehensive framework to enable modelling of all aspects of mortality and other demographics in the UK and other selected markets internationally.
Aon Solutions UK Limited - a company registered in England and Wales under registration number 4396810 with its registered office at The Aon Centre, The Leadenhall Building, 122 Leadenhall Street, London EC3V 4AN.