Broking group WTW has launched a new streamlined longevity swap solution called Longevity Stream, that’s set to broaden access to the expanding market for UK defined benefit schemes with £100m to £1bn of liabilities.
According to the announcement, the broker’s new solution broadens access to this expanding market while offering built-in flexibility to support run-on strategies and ensure a smooth transition to a bulk annuity.
“Longevity swaps are a well-established path for schemes in the UK market. Over £170bn of longevity risk has been transferred to reinsurers since 2009, with WTW as lead adviser on over £100bn of these transactions. However some smaller and medium-sized schemes have historically found longevity swaps more difficult to access due to the implementation and ongoing management costs,” WTW explained.
WTW also highlighted that Longevity Stream will offer a structured route to the longevity market, thereby granting trustees access to a panel of prominent global reinsurers, with Zurich serving as an experienced intermediary.
Key features of WTW’s new longevity swap solution encompass pre-negotiated contracts, developed in collaboration with legal advisors CMS, along with a streamlined operational framework, facilitating the more efficient implementation of longevity swaps for schemes under a fixed-fee arrangement.
It’s also worth highlighting that this release comes at a time when recent CMI mortality improvement projections and record low death rates in 2026 have brought renewed focus to longevity risk and the potential for further improvements in life expectancy.
The release of WTW’s new solution also demonstrates how the broker continues to do more work within the longevity swap market.
Earlier this month, the broker unveiled an updated version of its Geospatial Mortality Model (GMM), aimed at offering improved predictive capabilities for the US pension risk transfer market.
As our sister publication Reinsurance News reported, by incorporating WTW’s GMM into their operations insurers can enhance PRT pricing, strengthen asset-liability management, and gain better insight into longevity risk.
Rhys Mellens, Senior Director, WTW, commented: “Demand for longevity swaps has grown in recent years, with schemes increasingly looking to manage longevity risk, either as part of a run‑on strategy or to lock down a key driver of future buy‑in pricing.
Adding: “We are seeing increased interest from schemes that want to access this market but have been held back by the perceived complexity and cost. Longevity Stream removes those barriers, giving schemes a more efficient route to market whilst retaining future flexibility and enabling them to access the attractive pricing currently available.
Amanda Chamming’s, Partner at CMS, said: “Longevity Stream offers great flexibility for schemes that previously may have found it difficult to access the longevity swap market, enabling them to further reduce their risk, strengthen scheme security and protect long-term outcomes for members.”
View details of many longevity swaps and longevity reinsurance deals in our longevity risk transfer deal directory.
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