Prudential Develops Innovative Process with PIC to Help Small Pensions De-Risk

Prudential Retirement and Pension Insurance Corporation (PIC) have created an innovative approach for expediting longevity reinsurance transactions for smaller pension buy-ins and buy-outs. This new approach combines an advance commitment of capital, known pricing and the bundling of multiple transactions into a single closing to enable PIC to more nimbly and efficiently address the risk transfer needs of small pensions and their retirees.

Launched, tested and proven effective by Prudential and PIC throughout 2017, this flow reinsurance structure has shown itself to be effective at increasing the primary insurer’s capital efficiency and reducing the administrative burden for both the primary insurer and the reinsurer.

Read the full story here.