Marvin OnumonuInsurer supply has now overtaken demand in the UK’s defined benefit risk transfer market, according to Hymans Robertson.
The firm’s latest research found that the increase in insurer capacity comes as small scheme buy-in activity has grown, with schemes valued under £100m making up around 80% of all buy-in and buyout deals in 2024.
Hymans Robertson said new providers such as Utmost, Royal London, and Blumont entering the market has led to more competition and efficiency, especially for schemes in the sub-£100m range.
However, post-transaction capacity remains mixed, with a backlog of schemes waiting to move from buy-in to buy-out.
Iain Church, head of core transactions at Hymans Robertson, said: “The changing makeup of the UK risk transfer market makes this an exciting time for small schemes.
“The transformation of the market is unprecedented; it has moved from a supply-constrained market to one where competition among insurers is intensifying with insurers increasingly able to meet the specific needs of small schemes.
“With more providers now active in the space, insurers will need to work harder to differentiate themselves, not just on price, but critically on the service they provide, flexibility, and execution.”
Church added: “A key area of opportunity lies in how quickly and effectively insurers can support schemes in transitioning from buy-in to buy-out.
“Every delay drives up costs, and those insurers that can combine competitive pricing with timescale certainty are likely to stand out in a market that is more dynamic and competitive than ever.”
