The total risk transferred to insurers and reinsurers is predicted to reach £70 billion in 2026, up 15% from volumes seen in 2025, according to research by Willis Towers Watson (WTW).
Its annual De-risking report highlighted that as larger schemes undertake more de-risking transactions, the bulk annuity, longevity swap and alternative risk transfer sectors will continue upwards, supported by favourable pricing, strong competition and product innovation.
The bulk annuity market is projected to exceed £50 billion, driven by larger transaction sizes and attractive pricing.
Longevity swaps of up to £20 billion are also anticipated. While longevity risk transfer volumes will be driven by large schemes, there is growing interest from all schemes to support run-on strategies or to lock down an aspect of future bulk annuity pricing.
The report also predicts a rise in alternative risk transfer solutions, including an expansion of the UK’s superfund market. Two new entrants to the market are forecast in 2026, along with a doubling of completed superfund transactions and at least one new risk transfer service launching in the coming year.
Several high-profile acquisitions of UK insurers by overseas investors are expected to be completed in the first half of the year. Insurers are expected to expand services to help schemes progress efficiently from buy in to buyout, including more data cleansing responsibilities and offering solutions to accelerate guaranteed minimum pension (GMP) equalisation.
Gemma Millington, senior pensions risk transfer director at WTW, said: “The risk transfer market is entering 2026 with strong momentum. Schemes continue to benefit from improved funding levels and strong insurer appetite, which together create very favourable conditions in which to secure members’ benefits at compelling prices. We expect this window to remain open through 2026, but trustees will need to be prepared and strategic to take full advantage.
“Insurers have continued to evolve their asset-sourcing capabilities, in some cases through new global asset manager relationships, which is helping to maintain pricing strength despite potential regulatory shifts. As we look ahead, 2026 offers trustees a powerful combination of market depth, competitive pricing and expanded choice. Schemes that plan early and engage collaboratively with the market will be best placed to secure exceptional outcomes for their members.”
