The cost of transferring pension risk to an insurer is falling, driven down by rising bond yields and increased competition, according to one of the new generation of businesses set up to assume this risk from UK companies.

Companies keen to dispense of their pension fund liabilities can transfer the risk to an insurer in the form of a bulk annuity buyout transaction. The insurer assumes the pension scheme's assets and liabilities and takes responsibility for paying pensions to the scheme members.