As superfunds, insurer-led buyouts, and alternative structures reshape the risk transfer landscape, trustees and sponsors have more choice than ever, but also greater complexity. The market is evolving at pace, creating new opportunities and challenges for all stakeholders.
At our recent Endgame Solutions Conference at Silverstone, I chaired the session ‘The Consolidation Effect – The Evolution of Consolidators and the Industry Impact’, bringing together a panel of experts from across the industry.
The discussion featured Ben Salmons (Vidett), Simon True (Clara), Richard Wellard (Hymans Robertson), Tom Seecharan (PIC), Sara Chambers (Gowling), and Jonathan Griffith (LCP), who shared insights into how consolidation is changing scheme strategy and what trustees and sponsors need to consider.
A dynamic and competitive market
The consolidation landscape is becoming increasingly competitive, with new entrants joining established insurers and consolidators. Existing players are enhancing their propositions through investment in pricing, member experience and operational capacity. This is driving innovation and creating better outcomes, but also placing pressure on trustees to remain informed, well-advised, and ready to act when opportunities arise.
Legislative and regulatory developments are also playing a key role in shaping the market. Reforms around the superfund gateway process and evolving eligibility criteria are opening the door to a broader range of schemes. However, this also introduces new legal responsibilities, requiring trustees to be confident in how they interpret and apply new guidance.
Trustees must take the lead
With more endgame options now available, trustees are expected to play an increasingly proactive role in determining scheme outcomes. Strong governance, access to specialist advice, and a clear understanding of the risks and benefits of each route are critical. The panel emphasised the need for trustees to fully understand the underlying models of any consolidator — particularly as new entrants emerge.
Trustees and sponsors need scalable, efficient decision-making processes that can accommodate shifting timelines and evolving market conditions. Collaboration and clarity of purpose between trustees and sponsors will be central to navigating this landscape successfully.
What’s important to consider
- Member security comes first: Any decision — including buy-out, superfund entry, or alternative structures — must prioritise long-term member outcomes and benefit security.
- Skills and advice: Trustees must ensure they have the necessary skills, support, and access to trusted legal, actuarial, and investment advisers.
- Market awareness: Early engagement with insurers, consolidators, and advisers is crucial to assess all available options and maximise opportunities.
- Collaboration: Strong relationships between trustees and sponsors are essential to align objectives, manage risks, and deliver the best outcomes for members.
- Regulatory readiness: Staying up to date with legislative and regulatory developments is key to avoiding delays and ensuring compliant, well-informed decisions.
Recommendations and next steps
- Proactive engagement to understand priorities, concerns, skills gaps, and information needs.
- Encourage strong sponsor–trustee collaboration, ensuring clear alignment on risk appetite, member outcomes, and timing.
- Monitor legislative developments, particularly around gateway processes and superfund eligibility.
- Insurers and superfunds will need to continue investing in innovation, both in product development and process efficiency, to remain competitive in an evolving market.
Superfunds are now an integral part of the pensions endgame conversation. As the market continues to develop, trustees and sponsors that plan early, engage widely, and prioritise member outcomes will be best placed to navigate the complexity and unlock the opportunities ahead.
Please note this article has also featured with Mallowstreet
