This year will be a buoyant year for the risk transfer market according to Hymans Robertson, which has published its Risk Transfer Report 2025 today.
The consultancy’s report expects 2025 to have a record-breaking number of transactions, across both small and larger schemes and it expects the superfund market to grow and innovate, increasing the availability of endgame options.
“2025 looks set to be a period of huge growth for the risk transfer market with the whole market – both large and small schemes – in a boom period. As in previous years, large schemes have dominated the market with at least six insurers completing transactions greater than £1bn. However, an unprecedented number of small schemes have also completed whole scheme buy-ins with increased automation leading to slicker and more succinct processes and systems,” said Lara Desay, Partner and Head of Risk Transfer at Hymans Robertson.
“For larger schemes with great size has come great opportunity. Improved pension scheme funding, alongside increased scale and ambition from bulk annuity insurers, has combined to stimulate interest in insurers from the largest pension schemes. However, alongside the opportunity, there has also been challenges. Larger schemes are more than likely to have Illiquid asset challenges requiring time and patience from both sides to work through. Allowing ample time and attention to consider operational and administrative aspects of a transaction is also key,” she added.
Thia year’s report also includes Hyman Robertsons’ views on ESG and net zero, an update on longevity risk, a look into investment trends and a review of regulatory changes in the insurance market including the implications of the Solvency UK reforms.
