£50bn of buy-ins may need restructuring following GMP ruling

Trustees Agenda posted on 16 November, 2018

Aon has estimated that only a few schemes which have agreed buy-ins over the last ten years had equalised GMP beforehand, meaning that insurers will face a considerable amount of requests to restructure the contracts to ensure that they reflect the High Court's recent judgment on GMP equalisation. This could effect up to £50bn of buy-in contracts, which would present a huge problem to insurers at a time when demand for buy-ins and buy-outs is at an all-time high.