Pricing Spotlight

15 May 2017

The JLT pensioner buy-in affordability index tracks the relative cost of insuring pensioner liabilities against proxy Technical Provisions.

The chart below suggests that affordability worsened slightly over Q4 2016. Insurers became increasingly busy in Q4 as large volumes of schemes attempted to transact before the year end. However, early in Q1 2017, pricing was more competitive.

JLT pensioner buy-in affordability index

index tracking the relative cost of insuring pensioner liabilities against proxy Technical Provisions.

Note: The figures given are for illustrative purposes only. Trustees’ own Technical Provisions assumptions are scheme-specific and hence may differ from those assumed in our analysis. The buy-in price(s) obtained for a given scheme will vary according to a number of factors at the time of approaching the market, including financial conditions and outlook, expected longevity of membership, and insurer appetite and capital requirements.

For more information, please contact Ruth Ward, Senior Consultant at ruth_ward@jltgroup.com.