Small schemes face shut-out if pension buy-ins surge

Growing demand strengthens position of insurers

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Recent work by Legal & General (L&G) indicates that 67% of the largest defined benefit (DB) schemes are considering using bulk purchase annuity schemes in the next five years and recent deals show this to be an increasingly popular de-risking strategy. At the same time, some of the kinks in the market, including high rates of transaction failure and long lead times, are being tackled.

The market is becoming so popular, however, that real fears are emerging about a possible wave of deals for whic