As more and more multinational companies shed their pension liabilities globally, Prudential expects continued growth in the international pension risk transfer marketplace, according to a new white paper recently released by Prudential Retirement. The paper, "The Pension Risk Transfer Market at $260 Billion: Innovation, Globalization and Growth," examines the current state of the marketplace and how de-risking trends observed in the U.K. are leading other countries to de-risk, as well.
"The trend of pension de-risking is accelerating, and the market is likely to double within the next few years," says Amy Kessler, head of Longevity Reinsurance for Prudential Retirement. "Today the base of activity is in the U.S., Canada, the Netherlands and the U.K.—the global market leader. But there is a very good chance that between now and 2020, we will also see transactions in France, Switzerland, Germany, the Nordics, Australia and Chile."
Pension risk transfer solutions are being undertaken by corporations of all sizes and industries. Whether the solution is a pension buy-out, pension buy-in or longevity reinsurance, they are all designed to be flexible, customizable and aimed at achieving a lower-risk future. Furthermore, a number of recent high-profile transactions, like General Motors, Verizon and British Telecom, underscore the strength of the global de-risking trend.
"Plan sponsors and fiduciaries are growing keenly aware of increasing pension payment obligations as pensioners live longer in retirement and additional risks emerge," says William McCloskey, vice president, Longevity Reinsurance for Prudential Retirement. "Globally, more and more pension funds are taking the necessary steps to de-risk and are evaluating which solutions best meet their specific needs."
Want to learn more? Read the white paper. Want to speak with Amy or William? Contact Josh Stoffregen.
29 October 2015
Prudential predicts continued growth in international pension risk transfer market
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