Unlocking Value in Run-Off 2008 – A Survey of Discontinued Insurance in Europe

February 2008

The second edition of our Survey, produced in conjunction with the Association of Run-Off Companies (‘ARC’), analyses questionnaire results from a cross-section of professionals from discontinued and live insurers in both Continental Europe and the UK. The Survey examines attitudes towards managing run-off business across Europe and presents a unique insight into the run-off market.

The 2008 survey results indicate that:

• The size of the discontinued insurance market has fallen from €204bn to €202bn in the last 12 months, with the increase in Continental European run-off being countered by a decreased UK market
• Tied up capital (63%), volatility (59%) and operational costs (56%) are the key challenges facing insurers and reinsurers in their run-off business in Europe
• Knowledge and application of tools such as solvent schemes of arrangement is not widely appreciated, with only 20% of respondents aware that 31 schemes have been implemented to date for continental European business