United Kingdom

Risk Settlement

Navigating risk reduction for schemes of all shapes and sizes

Martin Bird
In this evolving market, Aon is well placed to help trustees and sponsors navigate the settlement market to find the solution that best meets their needs
Martin Bird, Head of Risk Settlement
 

Choosing the best risk reduction strategy can prove challenging. Our experts help trustees and sponsors understand their motivation for risk reduction. We analyse each pension scheme's unique position and ensure adequate preparation is undertaken, and we have settled risk using our full range of solutions for pension schemes of all shapes and sizes, consistently implementing the best solution at the right time.

More than ever those schemes who can correctly navigate the current busy marketplace and are ready to capture risk settlement opportunities that arise will be best placed to achieve their objectives. If you are thinking about whether risk settlement might be suitable for your own scheme, then now is certainly a good time to start planning.

Aon has the largest team of UK risk settlement specialists and are the market leader, being leading advisor on 40% of all risk settlement deals since 2019 and have led on advice to over 100 deals since 2016. This includes being lead advisor on the 3 largest UK bulk annuities to date. Aon have also advised on half of pension scheme longevity risk transferred to date. This success has been recognised industry wide, with our Risk Settlement team collecting 6 from the 8 industry de-risking adviser awards over the last 4 years.

Our success is driven by the personal, tailored approach from our dedicated team of consultants, who understand that each and every transaction is unique to the schemes needs.

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:

  • Bulk Annuity Compass – Our complete bulk annuity service positions our clients of all scheme sizes to get the best possible value from an annuity, Compass is designed to maximise insurer engagement, and deliver the best possible pricing
  • 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.

The menu to the right of this page showcases our recent and most popular insights and thought leadership . The buttons below will take you directly to further information on key de-risking strategies.

2021 Your Journey to Settlement

During 2021 Aon surveyed the UK pensions market to explore where schemes are placed along their journey to their endgame and to identify the opportunities that can increase certainty and reduce the cost of reaching the endgame. This report summarises over 120 responses received from pension scheme trustees and sponsors of schemes of all sizes.

Following on from the 2021 survey we incorporated key findings into our 2021 Journey to Settlement conference. You can now view the videos from this event at any time.

Finally and most importantly, we are offering all schemes the opportunity to complete the survey, for which, shortly after completion you will receive a personalised report showing where you are on your journey together with some suggested next steps to keep you on the right path.

Take the survey for your free personalised report  
Recognised Success across the pensions industry

Risk Settlement

 
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