The annuity purchase marketplace is currently restricted by a long process, lack of price transparency, and potential for missed opportunities.
Rooted in Mercer’s more than 20 years of experience in meeting the risk management needs of clients, the Mercer Pension Risk Exchange™ is a groundbreaking new web-based solution that helps pension plan sponsors take advantage of annuity purchase opportunities as they are presented and to execute at more competitive prices in a shorter time frame than is currently possible.
Market forces: Driving demand for annuity purchases
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Unpredictable marketEach deal is unique and attracts different insurers. Many deals attract a large price spread. |
VolatilityPricing fluctuates regularly but is not visible to plan sponsors. |
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DisconnectIntermediation lacking between sponsors and insurers to define needs and share data. |
Pricing obscurityPlan sponsors often don’t know the price at which they should execute an annuity purchase. Obtaining a price can be difficult and time consuming. |
New solution that supports pension plan sponsors throughout the complex annuity purchase process.
Helps plan sponsors be better prepared and become more educated buyers.
Provides a global perspective for multinational plan sponsors, providing annuity pricing in Canada, the US, and the UK simultaneously and in real time.
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Improves decision-making by allowing sponsors to identify market opportunities and to transact quickly when they arise.
Helps sponsors identify market opportunities and to transact at more competitive prices.
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Buy-out annuities as part of a de-risking strategy |
Buy-out annuities as part of a plan termination |
Buy-in annuities |
ReadinessWe help our plan sponsors determine client-specific metrics that should be monitored, and establish customized triggers upon which to act. |
TransparencyThe illustrative quotes provided on the platform are based on actual plan data, demographics, and provisions. |
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MonitoringOur pricing platform enables sponsors to continuously monitor their unique annuity purchase price according to client-specific plan metrics and to execute when market conditions are optimal. |
ExecutionBy front-loading the majority of the work, insurance companies will be able to submit binding pricing very quickly whenever an attractive market opportunity presents itself. |
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