Artex Risk Solutions has created a new facility to allow pension funds to transfer their longevity risk cost effectively and directly to the reinsurance market.
It has launched Iccaria, an incorporated cell company (ICC) domiciled in Guernsey, with the help of audit firm PricewaterhouseCoopers.
Pension schemes with liabilities as low as £250 million will be able to use Iccaria. No facilities currently exist to service funds of this size, according to Artex.
Paul Eaton, new business director at Artex, said: “This is an exciting time for Artex and the captive industry as we move into an era where we are able to help pension fund clients hedge their longevity risk on a cost effective basis.”
“For many years the captive industry has been providing clients with alternative risk transfer facilities, and this is another example of innovation being used to develop a bespoke solution to meet market demand.”
Artex also helped to launch the BT Pension Scheme to launch its ICC last year.
