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Aon urges transparency as PRA requires funded reinsurance risk plans by 21 October and considers limits on bulk annuity cessions, with scrutiny of overseas collateral and matching adjustment eligibility

Published on: 09 August 2024

Published by a Law360 reporter
Legal News
Article summary

Aon expressed a wish for clearer disclosure to customers about how far insurers of UK pension schemes rely on what are known as so-called funded reinsurance structures in the future. The Prudential Regulation Authority (PRA) has flagged worries about the growing deployment of these risk-sharing mechanisms, which typically include counterparties based outside the UK, as insurers scramble to meet unprecedented appetite for bulk annuity transactions. The regulator stated that, by no later than 21 October 2024, life insurers must produce comprehensive, detailed risk management plans covering the use of funded reinsurance and disclose any such major deals to the supervisor...

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