Amit Lad

3 weeks ago | barnett-waddingham.co.uk | Craig Turnbull |Amit Lad

The International Capital Standard (ICS) introduces a new approach to discounting illiquid liabilities — one that includes an explicit credit risk premium. But how does it compare to Solvency II’s Fundamental Spread? And what might it mean for UK insurers already familiar with the Matching Adjustment? We break down the key differences and their potential impact.

Nov 26, 2024 | barnett-waddingham.co.uk | Craig Turnbull |Amit Lad

The new business volumes written in the UK pension buyout/ buy-in markets in recent years include a notable growth in the volume of insured deferred member pension benefits. While insurance firms writing pension risk transfer business note the additional risks and complexity that can arise from deferred liabilities and price the business accordingly, the pricing differential observed between pensioner and deferred liabilities has narrowed over the last five years or so.