US. Prudential develops innovative process with PIC to help small pensions de-risk
A collaborative effort between Prudential Retirement, a unit of Prudential Financial, Inc. (NYSE:PRU), and Pension Insurance Corporation (PIC) has created an innovative new approach for expediting longevity reinsurance transactions for smaller pension buy-ins and buy-outs. This new approach combines an advance commitment of capital, known pricing and the bundling of multiple transactions into a single closing to enable PIC to more nimbly and efficiently address the risk transfer needs of small pensions and their retirees.
Launched, tested and proven effective by Prudential and PIC throughout 2017, this flow reinsurance structure has shown itself to be an effective tool for increasing the primary insurer’s capital efficiency and reducing the administrative burden for both the primary insurer and the reinsurer. With new models and predictive analytics, this systematic approach helps streamline the reinsurance transaction process for PIC’s smaller pension buy-in and buy-out transactions that meet pre-agreed criteria. These blocks will be reinsured by Prudential at the model-determined price.
Read More: Business Wire
