Isio forecasts continued bulk annuity growth and strong pricing

Isio has reported a record year for its risk settlement business, leading transactions with all ten bulk annuity insurers and completing over 25 deals in 2024, ranging from £1m to £1bn.

According to Isio, this year showed that schemes of all sizes, particularly those with early engagement and efficient governance, may achieve good outcomes.

Isio says a balanced approach is required because non-pricing elements, such as service quality, are becoming increasingly significant when choosing an insurer.

The firm anticipates the bulk annuity industry to remain active next year with new insurers expanding capacity and supporting ongoing transaction volumes and competitive pricing.

Isio director Karen Gainsford says: “This year has shown us the adaptability and continued buoyancy of the bulk annuity market. The addition of new insurers has created more competition for deals among insurers and greater opportunities for schemes of all sizes.

“While large transactions often command the most attention, small and mid-sized schemes have also benefited significantly from favourable pricing conditions. But pricing alone is not enough and, as the only consultancy to have led transactions with every active bulk annuity insurer, we have a unique view of the range of price and non-price offerings available. Trustees are increasingly focused on non-pricing factors, and it has never been more important for insurers to meet a scheme’s unique needs.”

Isio partner Steve Robinson says: “Schemes with a clear view on readiness and efficient governance are best placed to achieve great outcomes. For small to medium sized schemes, operational consolidation, such as through Isio’s Enplan, helps reduce the cost of approaching the insurance market. 

“Working alongside our new colleagues from K3 (subject to FCA approval) in 2025 we look forward to helping more schemes of all sizes achieve successful outcomes for the good of their members.”

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