A healthier way to de-risk

Defined-benefit funds all over the world are focused on de-risking but the amount of innovation and players to meet this demand is wanting. Until now.

A new report by the Pensions Institute at the Cass Business School examines the emergence of medically enhanced, underwritten or enhanced, bulk buy-ins, in which trustees buy a bulk annuity as an investment of the scheme, where some or all of the members covered by the policy are medically underwritten.

The argument is that medically underwritten annuities can bring cost savings to a de-risking approach that offers an effective hedge against a range of risks including interest rate, inflation, investment and longevity risks. Read the full report below.