With the substantial increase in volume in the UK bulk-purchased annuity (BPA) over the last two years, the role of funded reinsurance in supporting such growth is becoming more prominent, both for the purpose of balance sheet optimisation tool as well as for front-end pricing enhancement. Funded reinsurance represents an efficient way of attracting inflows of capital to support the growing BPA market and has attracted increasing levels of scrutiny from regulators. This step change in volume has driven many innovations being either explored or implemented in the UK funded re space, and many players have also started drawing insights from other global markets active with funded re. In this session, we propose to cover the following topics:
• Market outlook on the UK BPA industry and Funded Reinsurance
• The role of IFoA Funded Re working party
• Interpretation of the key focusing areas from PRA Funded Re CP/ SS (if it is released before the conference)
Speakers
Wei Hou, Grant Thornton and Shreyas Sridhar, Canada Life