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Pension Risk Bulletin: January 2022

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Pension Risk Bulletin: January 2022

January 29, 2022

The year 2022 is likely to see unprecedented annuity business volumes in the Canadian market, thanks to a general improvement in pension plan financial conditions. With increasing group annuity demand from sponsors and plan administrators, and a limited supply of insurer capacity, plan sponsors should ask themselves how to make their transaction stand out from the rest. There are many data-related elements that insurers consider, notably data quality, availability and completeness.

Key points

  • Annuity purchase data tells the evolving story of the plan’s experience and its demographic profile. This is in contrast to pension administration- and actuarial valuation-quality data, which are data snapshots at a point in time;
  • Transforming your pension administration data into annuity purchase data influences insurer pricing and their willingness to participate in a quotation process;
  • Good data management and governance should start now as it not only pays off for risk transfer transactions but also in on-going plan management.