Pension Insurance

Plan to insure liabilities

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For some schemes, purchasing annuities over a short time horizon may be feasible. Where this is not possible, schemes can develop a long-term staged plan for transferring pension liabilities to the insurance market in a cost-effective way that takes advantage of market opportunities as they arise.

Please click on each stage to find out more about what is involved at each phase.

Plan to insure liabilities

Feasibility

  • Identify insurance solutions that could be used to better manage risk within funding and cost constraints.
  • Consider the key issues, likely costs and potential hurdles, including data issues.
  • Determine transaction criteria and the likelihood that these will be met, including selection criteria for insurer comparison.

Monitoring

  • Put in place arrangements to monitor buy-out/buy-in funding position
  • Determine mechanisms to monitor pricing and other key market factors

Formal Quotations

  • Prepare necessary information and formulate quotation request
  • Take advice on which providers to approach

Provider selection

  • Analyse and compare the insurer responses
  • Take advice on the financial strength of the insurers and carry out anyfurther analysis necessary

Transact

  • Agree terms with the provider that ensures that the contract removes intended risk
  • Put in place interim arrangements to lock into pricing
  • Reposition assets for transition to insurer
  • Address any final data issues
  • Manage implementation with the various parties