Rising liabilities linked to longevity, low rates and higher ongoing
expenses are driving demand for pension risk transfer strategies around
the world. Since 2007, thousands of companies have been able to
implement pension risk transfer transactions, but in the current market,
many companies struggle to make progress toward de-risking. Today, at
the internationally renowned Longevity 12 conference, Prudential's Amy
Kessler will discuss the pressing need for the retirement industry to
continue to innovate to support the risk management needs of pension
funds and insurers in our graying society. Kessler is senior vice
president and head of Longevity Risk Transfer at Prudential Financial,
This Smart News Release features multimedia. View the full release here:
Amy Kessler, Head of Longevity, Risk Transfer (Photo: Business Wire)
Longevity 12 is the 12th International Longevity Risk and Capital
Markets Solutions Conference attended by pension, insurance, capital
markets and actuarial professionals together with leading academicians
in the field.
Kessler’s 2015 paper, The
Pension Risk Transfer Market at $260 Billion, discussed this
trend to follow the de-risking path. The result has been more than $260
billion in pension liabilities transferred between 2007 and June, 2015.
This number has increased another $20 billion in the past year.
More Innovation Ahead
“What we need in the market are more solutions for pension funds that
are not yet on the road to a lower risk future whose progress has been
impeded by today’s low rates,” said Kessler in advance of her address.
“With a decade of innovation behind us, we see a lot more work to do. We
need risk solutions for pension funds on the road to risk transfer and
solutions for collective defined contribution schemes as well as
adaptations to serve many more countries.”
In her address to delegates, Kessler will stress that with low interest
rates and market volatility continuing unabated—and with pressure on the
cost structure of pension funds rapidly increasing—innovation in the
space needs to go further, and should include:
solutions that help pension funds start on a path to de-risking even
in today’s low- rate environment
streamlined approaches to longevity risk transfer for smaller pension
existing solutions (in use in the US, UK, Canada and the Netherlands)
adapted for pension funds in Germany, Switzerland, Australia and the
risk transfer solutions for collective defined contribution schemes
sidecar solutions to bring alternative capital to insurers writing
retirement income solutions for individuals everywhere who are not
covered by DB plans
Attendees at the event will have two opportunities to see Amy speak, her
address from 4-4:30 pm today and later at a panel discussion on
reinsurance sidecars from 5-5:30 pm.
About Prudential Retirement
Prudential Retirement delivers retirement plan solutions for public,
private, and nonprofit organizations. Services include defined
contribution, defined benefit and non-qualified deferred compensation
record keeping, administrative services, investment management,
comprehensive employee education and communications, and trustee
services, as well as a variety of products and strategies, including
institutional investment and income products, pension risk transfer
solutions and structured settlement services. With more than 85 years of
retirement experience, Prudential Retirement helps meet the needs of 4.1
million participants and annuitants. Prudential Retirement has $374.9
billion in retirement account values as of June 30, 2016. Retirement
products and services are provided by Prudential Retirement Insurance
and Annuity Company (PRIAC), Hartford, Conn., or its affiliates.
About Prudential Financial, Inc.
Prudential Financial, Inc. (NYSE:PRU), a financial services leader, has
operations in the United States, Asia, Europe and Latin America.
Prudential’s diverse and talented employees are committed to helping
individual and institutional customers grow and protect their wealth
through a variety of products and services, including life insurance,
annuities, retirement-related services, mutual funds and investment
management. In the U.S., Prudential’s iconic Rock symbol has stood for
strength, stability, expertise and innovation for more than a century.
For more information, please visit www.news.prudential.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160929005107/en/