Pension Risk Transfer (PRT) Agreement
A pension risk transfer (PRT) agreement is a contractual arrangement between a plan sponsor (usually an employer) and an insurance company. In this agreement, the plan sponsor transfers a portion or all of its pension obligations to the insurer, including the responsibility for future benefit payments.
Read More: The Evolution of Pension Risk Transfer: Past, Present and Future
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Pension Risk Transfer: The Role of Insurers in the Ecosystem
The world of pension funds is designed to be dull, with a singular goal of earning enough money to make payouts to retirees. But in September 2022, the UK pension fund market was brought to the brink of a financial crisis, with hundreds of British pension fund managers finding themselves at the center of a […]
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Generative AI in Pension Risk Transfer: Introduction, and Key Use Cases
Warren Buffett famously noted that ‘someone’s sitting in the shade today because someone planted a tree a long time ago.’ Pension risk transfer, or PRT, did not just pop up overnight. It’s got history. Think of it as a response to a big problem: companies promising pensions they later find tough to keep. This dilemma […]
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The Evolution of Pension Risk Transfer: Past, Present and Future
Towards the end of the 20th century, a quiet crisis was unfolding in corporate America. Major organizations like General Motors, a colossus in its prime, grappled with a promise made in simpler times: secure pensions for its workers. As workers walked through the once-hallowed halls, they saw concern etched on the faces of executives. The […]
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