A bulk annuity transaction can include many different features depending on the objectives of pension scheme trustees and sponsors. One feature is the inclusion of “Residual Risks” cover which is also commonly known as an all risks buyout. A residual risks policy provides extra cover for risks such as missing beneficiaries, data and benefits errors and potentially other risks. Not all schemes request or feel the need to have residual risks cover, which typically comes at an additional premium, but can provide Trustees and Sponsors with extra comfort that these risks are covered as part of a bulk annuity policy.
Join PIC at this interactive roundtable to hear more about residual risks cover, including what risks are typically covered, how the policy typically operates, the due diligence process that insurers undertake, and how this area of the market is developing.