Bulk purchase annuity market
Many Defined Benefit (DB) pension schemes are now in surplus and looking to de-risk through bulk purchase annuities (BPAs). In response, the UK government has proposed interventions to support smaller or less well-funded schemes and to encourage investment in productive finance.
The Association of British Insurers commissioned Oxera to provide an independent economic assessment of the BPA market. The report sets out a structured framework to examine how the market is functioning, drawing on approaches used by regulatory authorities in market studies, and explores the potential effects of proposed policy interventions, including the establishment of a public sector consolidator and changes to surplus extraction rules.
