Heightened economic and market uncertainty will bring discussions on endgame solutions to the fore and continue to fuel the risk transfer market, one consultancy predicts. 

Sponsors and trustees will seek to reduce the risk from future market volatility and lock in the improved funding levels of maturing defined benefit schemes, Isio believes. 

“Against a backdrop of market uncertainty, we are seeing strong demand for derisking, particularly as schemes recognise the opportunity to bank recent funding gains,” said Isio partner Karen Gainsford.  

Isio said it has advised on 15 completed deals so far this year.   

Gainsford noted that insurer innovation on illiquid assets in particular has improved outcomes for large schemes, while smaller and mid-sized schemes are benefitting from thorough preparation and effective insurer shortlisting. Some insurers are agreeing in-specie transfers or offering to transact while a scheme is still winding down illiquid positions with a deferred element to the premium. 
   

   

   

    

The consultancy said its risk settlement business has grown in recent months and has advised on 15 completed transactions so far in 2025. 

In February this year, the firm bought buyout specialists K3 Advisory, which focuses on small and micro schemes. Adam Davis, Isio partner and founder of K3, said such schemes can find insurers if they approach the market in the right way. 

“The transactions we’ve completed show the breadth of insurer appetite and competition at this end of the market, with the transactions being spread across six different insurers,” he noted.  
 
“We’re seeing very healthy demand for schemes under £100m and in particular, those below £10m, as sponsors prioritise removing pension risk from their balance sheet. With smaller schemes, there’s no one-size-fits-all solution, but with the right advice and preparation, they can access competitive pricing and high-quality insurer engagement,” Davis said.