“As in previous years, we expect to see volumes weighted towards the second half of the year, with some large deals expected to complete before the year-end. Since the end of June, insurers have so far also reported a further £6.4bn of transactions either signed or in exclusivity, which underlines the continued momentum in the market.
“Competition among insurers remains exceptionally strong, demand remains high from schemes and the market continues to offer attractive opportunities for schemes of all sizes.
“The depth of insurer appetite has been particularly evident for small and medium-sized transactions. There have been fewer multi-billion-pound transactions in the market, so more insurers have turned their attention to smaller transactions to meet targets - and more insurers have launched dedicated small-scheme propositions this year.”
On key themes across the market in 2026
Dominic Grimley, Partner in Aon’s Insurer Due Diligence team, said: “One of the defining features of the market in 2026 is how quickly it continues to evolve. Market growth has demanded a wider search from insurers for attractive asset opportunities, with many insurers now having strong relationships with global asset firms. In the latest of these, Standard Life has recently announced a new proposed partnership with several major investment firms, to provide the capital and asset backing to compete for the market’s largest transactions.
“Innovation is also extending to member experience. For the most advanced insurer services, members can increasingly manage their pension digitally while the insurers’ call centres can provide enhanced support for vulnerable customers and potentially utilise live calculations.
“There’s now more variation in deal structures - developed to address particular client demands. For example, that can be to support a particular desired buyout timing, utilise scheme surplus or to provide members with a potential share of future asset gains.
“One of the other facets of the market that we are seeing, is that trustees are placing greater emphasis on evaluating insurers, given how their propositions are evolving through innovation and becoming increasingly sophisticated and differentiated.
“Factors such as member experience, financial strength, ESG credentials and cyber resilience are increasingly important points of comparison. Aon's Insurer Due Diligence service has helped trustees and sponsors assess these across over £100bn of transactions, ensuring that trustees can make fully informed decisions.”
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