Sustainability Integration in the pensions insurance market
Investment
Sustainability Integration in the pensions insurance market
As the UK Bulk Purchase Annuity (BPA) market continues to grow and reach record activity levels, our inaugural annual survey of sustainability integration (SI) in the pensions insurance market highlights the credentials of insurers in the market.
Our assessments of insurers and their investment strategies leverages a proprietary scorecard, so that pension fund clients can consider SI factors, alongside pricing, when approaching an insurance transaction. There is a clear and evident range of approaches in the market (based on our proprietary scorecard), with some insurers scoring considerably higher than others.
Insight
Endgame Sustainability Guide
Discussions around endgame targets are changing. Whilst previously schemes have pursued a singular endgame objective – achieving full funding on a prudent basis – the “game” has since changed. There is now optionality between insurance, consolidation or run-on, meaning well funded schemes may now choose to pursue either a short- or a long-term strategy. Regardless of a scheme’s objective, all material financial risks, including those linked to ESG, must be evaluated as part of trustees’ fiduciary duty.
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Cadi Thomas
