Insurance experts have questioned whether the UK’s bulk purchase annuity (BPA) market has hit its summit – and this will be debated at InsuranceERM’s upcoming Insurance Risk & Capital EMEA conference.
The conference will be held at the Hilton London Tower Bridge hotel on 2 December in London. It will provide a platform for chief risk officers, chief actuaries and chief sustainability officers at re/insurers to exchange ideas and compare strategies for navigating through the latest challenges facing the industry.
Among the topics to be discussed at the conference will be the outlook for the BPA market, the market dynamics and the future for the sector amidst heightened regulatory scrutiny. Experts from the panel and audience will also share their thoughts for the outlook and use of funded reinsurance/asset-intensive reinsurance to support the BPA market.
According to experts who will speak on the BPA panel, key forces shaping the market’s future include operational capacity, potential government interference and global regulatory developments.
Funded reinsurance’s evolving role will also be considered in the conference session, although one expert cautioned this “would not be a golden bullet for BPA insurers”.
The appetite for longevity and reinsurance and the outlook for interest rates were also cited as factors that will need to be considered as the BPA market evolves.
A poll conducted by Pension Insurance Corporation has said volumes transacted in the UK bulk annuity market will range between £40bn and £60bn ($53bn-80bn) in 2025. The experts in the preparation call broadly concurred with this, saying BPA deal volumes should be approximately £50bn-£60bn next year as pipelines are currently very strong.
Looking ahead, one panellist warned the market may have already reached its zenith - and deciding how long the trajectory will stay upward, before plateauing, is uncertain.
The Insurance Risk & Capital EMEA 2024 conference will deliver great content, with insight from engaging speakers, and also bring the insurance risk and actuarial community together.
To view the agenda and register for the conference, click HERE.