£550bn of Buy-ins Ahead and Why Good Data Will Decide Who Gets There First
The UK defined benefit (DB) market is heading for a huge decade. LCP predicts between £350 billion and £550 billion of buy-ins as schemes take advantage of stronger funding positions and insurers ramp up capacity. For many trustees, the finish line is suddenly within reach.
Insurers Are Ready, But They’re Picking Their Partners
Around 45% of DB schemes are now fully funded on a buy-out basis, roughly 2,250 schemes that could, in theory, insure their liabilities tomorrow. Insurers are ready too, with capacity expected to hit around £70 billion a year by 2026.
But volume brings choice. Insurers will prioritise schemes that are easiest to transact with. Schemes with messy records or gaps will wait longer or pay more.
The Real Bottleneck Is Data
LCP’s research highlights that poor data and GMP equalisation are still the biggest causes of delay. Insurers are doubling their post-transaction teams to cope with backlogs, but the problem starts much earlier. Incomplete records and unverified member details slow everything down.
Data quality isn’t just a compliance issue anymore it’s a competitive one. Schemes that can prove their data is accurate are deal-ready. Those that can’t risk missing the window.
Over the next decade, more than half a trillion pounds could shift from trustees to insurers. The market is ready. The funding is there. The deciding factor will be data.
At MM, we work with schemes and insurers to strengthen data integrity. Preparation and good practice in scheme management will make the difference. If your scheme wants to move quickly, make sure your records are as strong as your funding position. Clean data will get you to the front of the queue.