Discontinued Insurance Business in Europe
The survey, produced in conjunction with the Association of Run-Off Companies, analysed questionnaire results from a cross-section of discontinued and live insurers across Europe.
A great deal has happened since we produced our last Survey in early 2010. During the intervening period we have continued to learn more about what Solvency II will mean, both for the industry generally and more recently for run-off specifically.
In this survey, we take a snapshot look at organisations’ attitudes towards managing run-off business across Europe, the key challenges they face, as well as the restructuring and solutions available to them.
Trending this year
Across Europe run-off business is increasingly the subject of strategic plans, with over 90% of respondents stating that they have a strategic plan for dealing with their run-off business, and 60% stating capital release as the key objective – as consistent with previous years, tied up capital remains a major challenge. Respondents cite availability of run-off skilled resources as a constraint to being able to deal with run-off effectively within their organisations.
Though Solvency II is identified as the biggest challenge facing (re)insurers in respect of their run-off business, this is closely followed by access to exit mechanisms. As a significant proportion of Continental European respondents confirmed that their organisations had considered various exit options for run-off business, it must be that exit mechanisms which meet the needs of the business are still high on the agenda.
Unlocking value in run-off
PwC has played a key role on assignments in the live and discontinued sectors over the last 12 months. The Solutions for Discontinued Insurance Business team, whose details can be found on the right, can assist clients in their pursuit of value driven solutions in managing their run-off business in the face of these challenges.
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Fourth edition - A Survey of Discontinued Insurance in Europe
