The value of deals completed in the UK’s pension risk transfer market is expected to reach £70bn in 2026, according to WTW’s annual De-risking Report.
Total risk transferred to insurers and reinsurers was forecast to hit £70bn, an increase of 15 per cent year-on-year.
Last year, the UK’s total risk transfer market crossed the line of £500bn worth of transactions since the market was founded, WTW said, and the firm’s report indicated that growth was set to continue.
WTW said the bulk annuity market was projected to exceed £50bn, thanks to competitive pricing and larger transaction sizes, while the longevity swap market was expected to reach levels of up to £20bn.
Longevity swap growth was expected be driven by larger schemes, but those of all sizes were showing a greater interest in longevity swaps to support run-on strategies or to lock down crucial elements of bulk annuity pricing in the future.
Innovations across the market were also forecast, with the anticipated expansion of the UK’s superfund market part of a wider increase in alternative risk transfer solutions.
WTW senior pensions risk transfer director, Gemma Millington, said: “The risk transfer market is entering 2026 with strong momentum.
“Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits at compelling prices.
“We expect this window to remain open through 2026, but trustees will need to be prepared and strategic to take full advantage.”
Meanwhile, in the face of greater cyber security threats, the firm said that trustees were increasingly recognising the importance of cyber resilience when selecting an insurer.
“Cyber security has become an important measure of member protection, not just an operational concern,” said Millington.
“Trustees are rightly demanding evidence of strong controls and clear response frameworks. Insurers who can demonstrate excellence in this area will stand out in 2026.”
