Aon is currently seeking a Risk Settlement Associate Partner to join its team in London, United Kingdom. The role focuses on providing regulated settlement advice related to complex pension risk transfer strategies, specifically bulk annuities and longevity swaps. This position comes as the market for these financial instruments continues to grow, driven by pension schemes seeking to manage risks associated with increasing life expectancies and volatile market conditions.
The demand for longevity swaps, which transfer the risk of pension members living longer than expected to insurers, has been steadily increasing. According to WTW, 2024 saw £8 billion of liabilities covered by longevity swaps across four UK pension schemes, with Aon acting as lead advisor on several of these transactions according to WTW. This growth reflects a broader trend of pension schemes looking to de-risk and secure their long-term liabilities.
Role and Responsibilities
The successful candidate will ideally be certified to provide regulated settlement advice on both bulk annuities and longevity swaps. A track record of leading or co-leading transactions is essential. The role involves advising trustees and sponsors on the optimal strategies for managing pension risks, including assessing the suitability of longevity swaps and bulk annuity buy-ins. Mercer highlights that longevity swaps are becoming increasingly popular, particularly for schemes that aren’t immediately pursuing a full scheme buy-in as detailed by Mercer.
The position requires a deep understanding of the regulatory landscape surrounding pension risk transfer, as well as strong analytical and communication skills. The ability to work collaboratively with a range of stakeholders, including trustees, sponsors, insurers, and legal counsel, is also crucial. The role will involve leading client engagements, developing innovative solutions, and contributing to the growth of Aon’s risk settlement business.
Market Dynamics and Growth
The longevity swap market has evolved significantly in recent years, with transactions no longer limited to the largest pension schemes. WTW notes that they advised on two longevity swap deals in 2024 with liabilities under £500 million, demonstrating that smaller schemes can also benefit from these risk transfer solutions as reported by WTW. This accessibility is driven by strong engagement from reinsurers willing to consider swaps of all sizes.
The broader pension risk transfer market is also robust. Hymans Robertson estimates that the five largest bulk annuity insurers held over £30 billion of surplus capital at the conclude of 2023, enough to fully insure nearly £500 billion of liabilities in private-sector pension schemes according to Hymans Robertson’s 2025 Risk Transfer Report. This substantial capital base provides capacity for further growth in both bulk annuity and longevity swap transactions.
Longevity Risk and its Management
Defined benefit (DB) schemes face a key risk: members living longer than expected. Longevity risk is often the largest remaining risk for DB schemes after investment risk has been reduced. Mercer points out that longevity risk can be particularly concentrated among wealthier members, who are likely to live longer and therefore represent a greater liability for the scheme as explained by Mercer. Longevity swaps offer a way to transfer this risk to insurers, allowing schemes to better manage their long-term funding positions.
The US market is also showing increasing interest in longevity reinsurance, mirroring the growth seen in the UK and Europe. The Society of Actuaries notes that activity in the US pension risk transfer market is accelerating, and longevity reinsurance is poised to follow suit according to the Society of Actuaries.
Looking ahead, the demand for risk settlement solutions, including longevity swaps and bulk annuities, is expected to remain strong. Pension schemes will continue to prioritize de-risking and securing their liabilities in an environment of economic uncertainty and evolving regulatory requirements. The role of the Risk Settlement Associate Partner at Aon will be critical in helping schemes navigate these challenges and achieve their long-term goals.
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