Fears of runaway risk on offshore reinsurance

Life insurers catch the eye of UK regulator for pension buyout financing trick

Aerial view of the island of Bermuda
Many offshore reinsurance firms are based in Bermuda

UK life insurers think they have found a neat solution for a capacity problem that threatened to slow the booming pensions buyout market. Regulators, though, don’t much like what they see.

Around £50 billion ($63 billion) of pension liabilities were transferred from schemes to insurers last year. And to free up capital to do more of these deals, insurers have been turning to a relatively novel tool: funded reinsurance.

Funded reinsurance allows insurers to pass on the investment and longevity

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Register

Want to know what’s included in our free membership? Click here

This address will be used to create your account

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here