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The Emerging Importance of Governance Platforms in DB Scheme Wind-Ups

NEWS

28 Feb 2024

How Knowa can add value, before, during and after buy-in and wind-up

As pension schemes navigate the path to buy-in and eventual wind-up a lot of time and effort is focussed on member data quality and benefit specifications.

The rationale for for all the effort and cost this takes is clear - it's about enhancing the scheme's appeal to insurers by showcasing the robustness of its data and documentation. A well-presented scheme will not only increase the likelihood of a transaction progressing but could also positively impact pricing by minimising uncertainties for insurers.

However, the focus on presenting robust scheme data extends beyond meticulous benefit specifications. As schemes edge closer to buy-in, the spotlight increasingly falls on the quality and accessibility of governance data. This shift in focus has spurred a growing interest in the capabilities of Knowa.

Here are the key attractions of Knowa to schemes looking to buy-in within the next five years:

1. Improving Governance Data Quality

Knowa is recognised for its ability to enhance the robustness of governance data. The platform automatically generates audit trails for all actions, such as decisions made and communications between parties, offering several advantages:

  • Transparency in the decision-making process.

  • The ability to manage and mitigate risks associated with the buy-in, buy-out, and wind-up processes by ensuring all steps are well-documented and justifiable.

  • Assisting trustees in evidencing their discharge of responsibilities at wind-up.

2. Efficient Information Retrieval

Thanks to Knowa's AI-powered search engine, users can swiftly locate relevant information within the scheme's extensive knowledge base. This capability is invaluable, especially when addressing insurer queries and during the wind-up phase, as it reduces the time spent searching for specific documents or historical decisions.

3. A Natural Home for Governance Data on Wind-Up

Post-wind-up, scheme documents are typically archived in a massive data repository by the admin team. This can make locating specific items a daunting task. Recognising this challenge, a growing number of schemes are opting to use Knowa as the archive holder for their governance data. With a single 'lifetime fee' paid before wind-up, schemes can continue accessing all their governance information on Knowa, ensuring trustees can address any post-wind-up inquiries with minimal hassle.

4. Potential for Reducing Residual Risk Premiums

While this aspect remains untested, could Knowa's reputation for efficient knowledge capture and retrieval positively influence insurers' views on a scheme's governance? Might this confidence reduce the premiums quoted for residual risk as insurers feel assured of uncovering all potential "unknown unknowns”?

In summary, Knowa is not just a tool for DB pension scheme’s looking to run-on for 5+ years; it's a strategic asset that can positively contribute to a scheme's journey towards buy-in and wind-up. By improving governance data quality, enhancing information retrieval efficiency, and potentially influencing residual risk premiums, Knowa offers a comprehensive solution for schemes looking to navigate these complex processes with confidence, clarity and transparency.

PMI Pinnacle Awards Winner 2022

Innovation in Systems & Technology

UK Pensions Awards Winner 2020 & 2022

Technology Innovation of the Year

Knowa® is a registered trademark of Knowa Ltd.

PMI Pinnacle Awards Winner 2022

Innovation in Systems & Technology

UK Pensions Awards Winner 2020 & 2022

Technology Innovation of the Year

Knowa® is a registered trademark of Knowa Ltd.

PMI Pinnacle Awards Winner 2022

Innovation in Systems & Technology

UK Pensions Awards Winner 2020 & 2022

Technology Innovation of the Year

Knowa® is a registered trademark of Knowa Ltd.

PMI Pinnacle Awards Winner 2022

Innovation in Systems & Technology

UK Pensions Awards Winner 2020 & 2022

Technology Innovation of the Year

Knowa® is a registered trademark of Knowa Ltd.