View more on these topics

Just Retirement launches DB de-risking business

Just Retirement has launched a defined-benefit de-risking business targeting small and medium-sized businesses.

The provider currently specialises in the annuities and equity release markets.

It has entered discussions with employee benefit consultants about using medical underwriting to allow companies with DB schemes to pass on the longevity risk associated with their pension to the insurer.

Just Retirement direct of defined-benefit solutions Tim Coulson says: “Big deals may capture the headlines but the reality is that it is modest-sized schemes that make up the majority of the 6,400 schemes tracked by the Pension Protection Fund.

“The average buy-in/buy-out deal is for around £20m. This part of the market has multi-billion growth potential if compelling solutions can be offered.

“Smaller schemes face exactly the same problems as bigger ones but are not well served by the current providers for whom bigger deals are more lucrative. However, our underwritten solution can generate larger cost savings for more focused memberships compared to larger schemes where life expectancy will typically be closer to average.”

Hargreaves Lansdown head of advice Danny Cox says: “This makes a lot of sense. An accurate picture of longevity and liability should ensure fair pricing.

“The hurdle will be organising the underwriting of the members because owners and senior staff of SMEs are notoriously difficult to pin down for medicals.”

Recommended

Mark Preston MM blog

The impact of G-Day gender pricing changes

In my last article I discussed underwriting post G-Day, when the admittedly boring conclusion was that little will change. This time I want to talk about premium rates, which face a far greater impact due to the new gender laws. First, the obligatory reminder: we are dealing with the twin changes caused by moving to […]

Pensions Regulator under fire over auto-enrolment ‘small’ DC stance

The Pensions Regulator has come under attack after chairman Michael O’Higgins urged employers not to use “small” defined-contribution schemes for automatic enrolment. O’Higgins delivered a speech to the National Association of Pension Funds trustee conference in London on Tuesday warning against using small DC arrangements, high-charge legacy schemes, Sipps and SSASs for auto-enrolment. The regulator […]

Schroders’ Richard Buxton predicts start of equities bull market

Schroders head of UK equities Richard Buxton has called the beginning of a bull market in equities. Buxton, who runs the £3.1bn UK Alpha Plus fund, predicted in 2002 that there would be a period where the equity market would go sideways and while there has been a total return from the market over the […]

9

Govt donates £1m from FSA fines to military charity

The Government is donating £1m of money collected from FSA fines to the military charity Fisher House, according to The Sun. The money comes as part of a £35m pot allocated to the armed forces by prime minister David Cameron during the Conservative party conference in October. In the wake of the Libor rigging scandal, […]

India budget: BJP focuses on growth

By Kunal Desai, Head of Indian Equities

With markets kept open on Saturday, finance minister Arun Jaitley delivered a promising budget focused on growth and decentralisation. While many complained about a six-day working week, there was much to be pleased about and the markets rallied in the afternoon to finish in the green.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment