The Insurers Views on Residual Risk Certainty – Survey Analysis

We conducted a survey of all bulk annuity insurers who currently offer (or can offer) residual risks cover as part of their bulk annuity policy. We were keen to hear their views on a number of areas including:

• Should trustees worry about getting certainty on residual risks pricing before choosing an insurer;
• Does having a sellers report (report produced by a trustee) change the way the insurer approaches their own residual risks due diligence;
• Why insurers prefer their own lawyers to conduct due diligence rather than relying on a sellers report (produced by the trustees);
• Whether insurers would prefer a sellers or Buyers’ Report if given the chance.

We wanted to share the results and our analysis with you. If you would like more details on the Buyers’ Report and how it works, please do contact Amrit Mclean.