One of the hottest areas of insurance over the last few years is pension risk transfers (PRTs). One of the biggest challenges on the balance sheet of major employers is the uncertainty of their pension risk. It continues to grow, even as companies close their plans. A PRT allows that company to transfer the risk of their future pensions to an annuity insurer. Effectively, the balance of the pension account is used as premium to fund a group annuity covering the pensioners. The number of people in the plan, their ages, and more are used to calculate the premium, which is effectively the bid of the insurer on the PRT. Since each bid is bespoke, it is a balance between profitability and a winning bid price.
In this model insurer submission, Prudential Financial shares the technology implemented to digitize and automate the retirement benefit quotation process, a key experience for pre-retirees, reducing manual effort while improving annuitant ease of doing business. It could be transformative to a very competitive industry.

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