Lara Desay explains why approaching the risk transfer market may now require a more tailored approach which reflects a scheme’s size.

Busyness in the risk transfer market is at an all-time high, with around £25bn of bulk annuity transactions expected to be secured in the first half of 2023. This compares to around £27bn in the whole of 2022.

To deal with this level of activity, where it’s been decided that securing a buy-in is the right approach for the scheme, the way pension schemes approach the market must adapt to secure a successful transaction. The traditional method of approaching all (or most) insurers in the market and undertaking a two-round pricing process to deliver competitive pricing and terms may no longer be fit for purpose for many schemes. Rather, a more targeted approach particularly driven by scheme size might be optimal.