Covenant risk solutions
As trustees progress in their journey to improve their funding levels and start thinking about transferring the economic risk to another party, so counterparty risk becomes a key risk factor. Historically, this journey has generally ended with a decision to enter into an insurance policy with a regulated insurer, which in effect transfers the economic risk from the scheme and from the sponsor through the covenant to the insurance company. Our unique approach enables trustees to directly compare insurers across a range of key risk factors.
Key questions in your decision-making process
- How does the insurer’s overall risk profile compare with its competitors?
- Is the transaction affordable? In other words, what will the insurer’s capital position look like post-transaction?
- Are there any material areas of concern which could threaten the insurer’s ability to meet its obligations to policyholders in full?
Our approach is built on three pillars
- We have developed an approach that is the most comprehensive in the market.
- We enable you to directly compare insurers across a range of key risk factors.
- We provide clear advice by cutting through insurance industry jargon