The German branch of WTW has added a buyout solution to its current derisking platform.

According to a statement from the firm, the move is part of its expanding range of company pension schemes and derisking solutions. WTW said it has already begun an independent risk carrier as part of its attempts to create sustainable and future-proof solutions.

WTW head of retirement Germany, Hanne Borst, said: "By offering a pension buyout solution, we are responding to the different market developments and the associated changes in customer needs.

"With our decades of experience and expertise in the areas of pension de-risking, capital investment, actuarial services, M&A and administration of pension obligations, we are ideally positioned to enrich and actively shape the German pension buyout market as the first full-service provider on the market with innovative approaches."

The firm placed the development alongside the backdrop of increasing challenges for German firms when it comes to pensions. It named the shifts of the country when it comes to corporate structures, alongside demographic challenges and a need to remain competitive, as the reasons for its ongoing developments of pension solutions.

There were few details on the solution itself, other than it will be available from June. However, WTW did cite the advantages of economic, accounting, and operational easements, along with a reduction in potential legal liabilities from a uniform product.

Borst added: “This significantly reduces the administrative burden on companies and allows them to concentrate on their core business. With investment or insurance-based investment options, we offer attractive solutions for small and medium-sized to large DAX companies. This is how we complete our de-risking portfolio for our customers."

WTW also said that the market is currently tilted towards de-risking plans due to the capital markets and the current interest rate.

WTW senior director for retirement, Johannes Heinizsaid, said: "The degree of financing of company pension schemes is at an all-time high. This makes it easier to implement restructuring in pension buyout solutions. Many companies have set aside sufficient financial resources. They can only use this to finance pension obligations. Accordingly, now is a good time to initiate planning in this direction."

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