The UK pension risk transfer (PRT) market is expected to see market inflows of over £500bn between 2029 and 2043, Legal & General (L&G) has said, with the global PRT market on track for a "transformative period".

L&G's Global PRT Monitor report suggested that the next decade alone could see up to £1trn in pension liabilities secured, including around £0.5trn from the UK, £0.4trn in the US and £0.1trn in Canada, with further growth potential in other new markets. 

And despite a slower start to the year in the UK, L&G argued that total UK market volumes for 2025 are still expected to be consistent with industry projections of £40bn-50bn for the third year in a row.

Indeed, L&G said that the UK market’s scale remains "impressive", noting that, in 2024, a record 299 transactions were completed across the market and six insurers each wrote market volumes of more than £5bn for the first time.

L&G pointed out that pension plan funding levels remain at historic highs, with The Pensions Regulator estimating that around half of UK DB plans are now fully funded or better on a buyout basis.

Given this, it said that it expects heightened demand to persist in the years ahead, with market inflows set to surpass £500bn between 2029 and 2043.

This is not the only European PRT market expected to grow in recent years, as L&G said that the Netherlands and Ireland show strong growth potential [read more on our sister title, European Pensions].

L&G said this could represent a "significant opportunity" for the sector to drive global economic growth by supporting companies to de-risk their balance sheets and focus on their core businesses, while delivering long-term financial security to pension plan participants and channelling investment into vital assets like housing and infrastructure.

But insurers may also need to work harder to differentiate themselves, as L&G found that, in the UK PRT market, there is a growing emphasis on customer service and the support available to members before and during retirement.

With increased choice from an evolving panel of insurers writing PRT business, L&G said that considerations such as an insurer’s track record and member experience offering are becoming increasingly important. 

As a result, service quality, both before and after buyout, is becoming an even more important facet of insurer propositions.

L&G institutional retirement CEO, Andrew Kail, said: “The PRT market continues to enjoy significant momentum, with £1 trillion in global opportunities. This momentum is driven by strong funding levels, regulatory clarity, and increasing sponsor engagement.

"In the UK, the maturity of the market is reflected in both the scale and number of transactions completed each year."

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