Pension Risk Transfer
Pension risk transfer (PRT) is a strategic financial move where a plan sponsor transfers some or all of its pension obligations to an insurer, thereby shifting the associated risks. This transfer aims to mitigate financial uncertainty and secure long-term stability for the pension plan. By transferring obligations, the plan sponsor seeks to protect against potential fluctuations and uncertainties in the financial landscape, ensuring retirees continue to receive promised benefits through a stable and secure source, typically an insurance company.
Read More: The Evolution of Pension Risk Transfer: Past, Present and Future
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Pension Risk Transfer: The Role of Insurers in the Ecosystem
The world of pension funds is designed to be dull, with a singular goal of earning enough money to make payouts to retirees. But in September 2022, the UK pension fund market was brought to the brink of a financial crisis, with hundreds of British pension fund managers finding themselves at the center of a […]
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Generative AI in Pension Risk Transfer: Introduction, and Key Use Cases
Warren Buffett famously noted that ‘someone’s sitting in the shade today because someone planted a tree a long time ago.’ Pension risk transfer, or PRT, did not just pop up overnight. It’s got history. Think of it as a response to a big problem: companies promising pensions they later find tough to keep. This dilemma […]
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The Evolution of Pension Risk Transfer: Past, Present and Future
Towards the end of the 20th century, a quiet crisis was unfolding in corporate America. Major organizations like General Motors, a colossus in its prime, grappled with a promise made in simpler times: secure pensions for its workers. As workers walked through the once-hallowed halls, they saw concern etched on the faces of executives. The […]
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