Our predictions for 2023: what’s on the cards for the de-risking market?

Charlie Finch and Catherine Hopper, alongside LCP’s longevity pension risk transfer team, have considered what might lie ahead for the de-risking market in 2023.

Here, they share their key predictions for 2023 and discuss how this might impact schemes that are considering insurance through a buy-in, buy-out or longevity swap.

LCP’s top five predictions for 2023

1. Buy-in/out volumes will reach a new record this year, breaking the £44 billion record set in 2019
2. Pricing will continue to be attractive for schemes preparing properly, but schemes will need to work harder than before to secure active insurer participation
3. There will be fewer partial buy-ins, more full buy-ins and some longevity swaps
4. New innovation will help to address the illiquid asset challenges faced by some schemes ahead of insurance
5. The chance of a new insurer entering the buy-in/out market is the highest for some years