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08 March 2010

Aon Survey Focuses On Emerging Trends

Aon Consulting has issued its survey of top global financial services organisations that provide pension risk management products and solutions to plan sponsors in the UK, US and Canada.

Results show that 58% rate interest rates as the biggest issue facing Defined Benefit (DB) pension plan sponsors between now and 2013, followed by longevity risk (21%), equity markets (15%) and inflation (6%).

The survey reveals that UK DB plan sponsors appear to be further along in implementing innovative solutions to key issues than their counterparts in the U.S. and Canada. Moreover, outside of interest rates, respondents note longevity and equity market risks as the two most difficult risks to mitigate and remove.

"Historically, the risk management products and solutions available to plan sponsors in the UK have been more advanced than those in the U.S. and Canadian markets." says Brendan George, senior vice president and global survey lead.

"However, recent advancements in the U.S. and Canadian Insurance and fund management industries give plan sponsors sufficient choice today."

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