Management Consulting

Aon, in collaboration with Eversheds Sutherland LLP, developed the Pathway pre-negotiated bulk annuity contracts to address the challenges faced by UK professional clients in the pensions industry. The primary issue was the need for a swift and efficient risk transfer to the annuity market, which is often hindered by lengthy processes and complex negotiations. The Pathway solution utilizes standardized pre-negotiated contracts that streamline the implementation of bulk annuities, allowing clients to proceed more quickly and with fewer barriers. This approach not only enhances the speed of transactions but also ensures that clients receive better terms than those typically available in the market. The results of implementing the Pathway contracts have been significant, boasting a 100% conversion rate to date. This success is particularly beneficial for smaller pension schemes, which often struggle to navigate the complexities of risk settlement. The Pathway team, led by Joe Hathaway, focuses on delivering tailored, high-quality solutions that help trustees and sponsors effectively manage their schemes. The fixed fees and tightly defined processes associated with Pathway contracts help control costs, making them an attractive option for clients looking to optimize their bulk annuity deals, whether for underwritten transactions or full buyouts of hybrid schemes.