Andrew Bulley, PRA’s Director of Life Insurance, has given a regulatory perspective on risk transfer by insurance companies and the risks that it itself creates. He discussed recent trends and developments in the bulk purchase annuities market, particularly focusing on the potential for growth in the market size. He also spoke about longevity risk transfer and what that means in practice, noting that PRA’s expectations surrounding reinsurance have not changed as a consequence of Solvency 2. Mr Bulley concluded by reminding firms that their usual approach to making strategy decisions should continue and by asking insurers to maintain an open dialogue with PRA on all market developments and risk areas. (Source: PRA Bulley – risk transfer)