Buy-in and buyout market volumes are expected to be around £25bn in the second half of 2022, analysis from Hymans Robertson has revealed.

It also estimated that the buy-in and buyout market volumes were between £10bn and £12bn in the first half of 2022.

Therefore, Hymans Robertson predicted that the total volumes for 2022 are set to be 25 per cent higher than 2021, at around £35bn.

It also predicted that 2023 would be a record year for buy-ins and buyouts, saying that it was likely to exceed the £44bn seen in 2019.

By the end of 2031, £1trn of pension scheme liabilities will be insured, covering five million members, according to Hymans Robertson.

Hymans Robertson head of risk transfer, James Mullins, commented: “The spread of activity in the buy-in market during 2022 is shaping up to be similar to 2021, with a relatively modest level of activity in the first half of the year and then a very busy second half of the year.

“The insurers are getting very busy, receiving a significant number of buy-in quotation requests over the summer, which we expect will mean that the second half of 2022 becomes the second busiest six-month period ever for the buy-in market.

“That would also mean that 2022 would become the second busiest year on record for buy-ins and buyouts.

“The rapid growth in demand for pension schemes to insure their risks, along with improved pension scheme funding levels, attractive insurer pricing and new alternative risk transfer options, means that we expect a record breaking year for buy-ins and buyouts in 2023.

“This is likely to exceed the £44bn that we saw in 2019. We also expect around £50bn a year of buy-ins and buyouts on average over the next 10 years, in addition to longevity swaps.

“That means by the end of 2031, £1trn of pension scheme liabilities will have been insured, covering five million members’ benefits."

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