This year is set to be the biggest on record for pension scheme de-risking, with £65bn of bulk annuity and longevity swap transactions anticipated to complete, according to WTW’s (Willis Towers Watson’s) annual De-risking report. Bulk annuity transactions – also known as buy-ins and buyouts – will make up £40bn of the anticipated total, while longevity swaps are expected to complete the remaining £25bn.
According to recent WTW research, one in three (30%) pension schemes anticipate de-risking their liabilities in the next three years, and 2022 is likely to be a peak year due to a combination of competitive market pricing, pent-up demand from the pandemic and competition between insurers and reinsurers seeking to fill their expanded targets.
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