Management Consulting
Aon
Full Credential Description
Aon has identified a significant opportunity in the UK risk settlement market for smaller pension schemes, particularly those under £150 million. The firm has successfully completed six transactions this year across five different insurers, demonstrating that smaller schemes can still thrive despite concerns about being overshadowed by larger deals. Aon's tailored solution, known as 'Pathway', is specifically designed to assist these smaller schemes in navigating the complexities of the market. This approach not only helps in gaining traction with insurers but also ensures that each scheme is presented in a way that maximizes their chances of achieving favorable outcomes. The Pathway solution is characterized by its low-cost, fixed-fee structure, developed in collaboration with Eversheds Sutherland, a prominent international law firm. This combination of Aon's extensive market experience and a streamlined preparation process has resulted in a remarkable success rate, with over 95 percent of Pathway transactions completing successfully. Since its inception, the Pathway team has managed around £2 billion in liabilities, instilling confidence in both insurers and clients regarding the effectiveness of this approach. Aon's insights into the evolving market dynamics emphasize the importance of preparation for smaller schemes. They recommend that schemes ensure alignment among stakeholders, develop clear strategies for both transactions and post-transaction activities, and remain flexible to enhance engagement with insurers. By following these guidelines, smaller pension schemes can effectively navigate the market and secure the best possible outcomes for their unique circumstances.