As defined benefit (DB) schemes move toward their endgame, with many now fully funded, increasing numbers are exploring pension risk transfer (PRT) options including buy-ins, buy-outs and longevity swaps.
While the market is experiencing record-breaking transaction volumes, it's technology and data-driven readiness that are setting the pace. In fact, with new entrants like Blumont Annuity joining the market, we're seeing increased insurer capacity and competition. For schemes, this means more options. For insurers, it sharpens the focus on efficiency and data confidence. It's the schemes that come prepared that are sure to attract the most insurer attention, and at the heart of that preparation lies accurate data.
Transactions, regardless of structure, depend on clean, complete and current member data. Strong pension risk transfer solutions begin with data confidence. Without it, transaction pricing becomes more uncertain, timelines stretch and risks increase. For schemes aiming to secure member benefits and manage long-term liabilities, being data-ready is no longer optional. It's the difference between opportunity and obstacle.
Technology can play a key role in helping schemes take control of their data and manage the PRT process with greater confidence. Regardless of the transaction type, the same foundation applies: precision and preparation.
Insurers have developed specific solutions for smaller schemes, often using templated formats to speed up transactions. These can improve efficiency but also demand greater data accuracy from the outset.
For schemes managing data from multiple administrators or legacy systems, this can be challenging. But it’s not as time consuming as it once was to consolidate data from different systems into structured formats that meet insurer expectations – there are solutions that expedite this process now.
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And it's not just smaller schemes that can benefit. Ready-made solutions are guiding schemes and trustees through populating insurer templates efficiently and accurately, regardless of scheme size. These tools use powerful business rules engines to show only the relevant fields for completion, apply validation checks to reduce errors and inconsistencies and provide pre-drafted content to speed up the process. In some cases, an AI layer can further assist by streamlining inputs and reducing manual oversight. These innovations are helping trustees and advisers reduce friction and prepare more confidently for market engagement.
All PRT routes require an accurate picture of scheme liabilities. That means knowing who your members are, where they live and how long they’re expected to live. For example, Heywood's recently published Pension Pulse report analysed 3-million-member records and found that on average:
For schemes with tens of thousands of members, these small but not insignificant percentages translate into major risks and unnecessary costs. The consequences could result in inflated insurance premiums or complicated deal negotiations, if left unchecked.
Longevity swaps rely heavily on mortality data. Inaccurate assumptions around life expectancy can lead to suboptimal pricing and long-term financial exposure. Similarly, the pension scheme buy-out process relies on accurate member-level data, including spouse details, postcode longevity factors and payment history. The more confidence an insurer has in your data, the tighter and more accurate the pricing.
Across the market, technology is helping schemes, advisers, trustees and insurers build a clearer and more complete picture of scheme data. From digital validation tools and automated benchmarking to regular address and mortality screening, tech-led solutions are becoming essential.
We’re also starting to see the true benefits of how AI could be adopted to further enhance services.
Importantly, perhaps driven by the upcoming pensions dashboards, but maybe a broader awareness around member engagement and heightened PRT activity, data management isn’t a one-off activity. It’s increasingly viewed as an ongoing process that needs to be embedded into day-to-day administration. With data beginning to decay as soon as it’s updated, regular attention helps schemes stay prepared for the opportunities that may arise at short notice. A clean and accurate dataset reduces cost, increases insurer confidence and smooths the path to a successful transaction.
For schemes wondering how to prepare for a buy-in, establishing a robust data cleansing and validation strategy is a logical first step.
It’s worth noting that post-transaction, the member journey doesn’t end. For buy-outs, clear and accurate communication is essential. That’s where digital engagement comes into its own. Tools like AI-driven personalised video and secure digital portals that help members understand their benefits and update their information easily.
Schemes that invest in digital engagement will be better placed to reduce costs and deliver a smoother experience for members and insurers.
Recent research from consultancies like LCP and Hymans Robertson shows just how quickly the UK pension risk transfer market is evolving. LCP predicts another bumper year in 2025 with £40bn to £50bn of buy-ins and over 300 transactions completed, continuing a strong trajectory in bulk annuity market trends. Much of this growth is being driven by smaller transactions, particularly those under £100m, which made up over 80% of transactions in 2024.
At the same time, the number of active insurers in the buy-in market is growing. LCP reports that M&G, Royal London and Utmost all entered the market in the last couple of years, and Blumont Annuity joining them this year. This influx is helping to boost capacity and maintain competitive pricing, even in a high-volume market.
But the increase in volume and complexity brings new pressures – particularly on administrators, advisers and scheme data. In a recent LCP poll, 72% of respondents listed administrator delays as the biggest risk to post-transaction timetables. As schemes move from buy-in to buy-out and beyond, the spotlight will increasingly fall on how data and processes are managed before, during and after transactions.
With data under increasing scrutiny, pension risk transfer solutions depend on strong data readiness - the key to securing insurer attention and competitive pricing.
With the right pension risk transfer solutions, this process doesn’t need to be overwhelming. It can be a confident step toward long-term security.