Pension Insurance Corporation explains why insurance pricing for defined benefit schemes is now at its most favourable level since 2008.
In an audio presentation, PIC co-head of business origination David Collinson examines the factors behind the recent moves in insurance pricing - and looks at why pensioner-only transactions able to be concluded on the most favourable pricing since Q4 2007.
Collinson also highlighted the importance of reducing any deficit following Pension Insurance Corporation research which shows the cost to a typical pension scheme of running a deficit being 1.2% of liabilities, or £12m per annum to a scheme with £1 billion in liabilities, during 2010.
Finally, Collinson considers where the pension insurance market may go during 2011, with up to £6 billion of pension risk transfer solutions potentially being concluded in the first half of 2011.