Insolvency insurance stands behind German and Swedish book-reserve pensions, but the concept has not really caught on elsewhere. Brendan Maton explores the world of unfunded and partially funded pension schemes with an external underpinning
At a glance
Germanys direct promise pension system, traditionally financed by book reserves, now covers more than 8m workers.
Swedens PRI Pensionsgaranti covers 700 employers.
There has been limited take-up for indemnity insurance in the UK.
German listed corporates started to finance their book reserve pensions in the early 2000s.
Throughout IPEs 20-year existence, capital funding has been championed as the way forward for pension provision. The European Commission devised the IORP Directive as a mea…
Read the full article at: https://www.ipe.com/pensions/pensions/briefing/insolvency-insurance-behind-the-promise/10018615.article
