Heritage Insurance Management (Heritage), recently acquired by Artex Risk Solutions, has been selected by BT Pension Scheme (BTPS) to provide insurance management services for the administration of BTPS’s newly established insurance company based in Guernsey.
BTPS has established BTPS Insurance Incorporated Cell Company (ICC) to underwrite longevity arrangements, which will protect the scheme against costs associated with potential increases in life expectancy.
The scheme has also transferred longevity risk to the insurer, which has in turn reinsured this longevity risk in the reinsurance market.
By using a wholly owned insurer, BTPS was able to access capacity in the global insurance and reinsurance market directly.
Paul Eaton, the new business director of Heritage, said: “BTPS spent a considerable amount of time planning for this transaction and part of the analysis involved the consideration of where to establish the insurer.”
“The selection of the insurance manager was another key decision and Heritage was able to provide expertise, operational capability and willingness and ability to work with BTPS in a bespoke fashion on this project.”
Merise Wheatley, director and project leader at Heritage for the establishment of the BTPS insurer, added: “It has been a great experience to work on this transaction which was ground breaking in terms of both size and structure, but also made best use of Guernsey’s strengths as a captive domicile.”
