The U.K. Government’s recent publishing of its response to its own Solvency II consultation provided encouragement for the country’s pension risk transfer market. Looser capital constraints for insurance companies could see more money available for defined benefit pension plans looking to fully insure their plans via the buy-out option.
So, for this month’s poll on Life Risk News, we asked our readers whether they think 2023 will deliver the first wave of increased deal flow in the sector. Approximately a third of respondents – 34.8% – think that the U.K.’s PRT market will see increased activity this year. None at all think that there are too many other headwinds, leaving nearly two-thirds – 65.2% – saying that it’s too early to call one way or the other.
Perhaps 2023 is too early. But demand is at an all-time high, so regardless of whether anything happens this year in terms of the British Government passing Solvency II reform, expect another busy year in the U.K. PRT market.