Unlocking Value in Run-Off 2009 - A Survey of Discontinued Insurance in Europe

March 2009

The third edition of our Survey analyses responses from a cross-section of insurance 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 discusses the key challenges that the run-off industry currently faces.

The 2009 Survey results indicate that:

• The size of the discontinued insurance market has fallen from Euros 202bn to Euros 196bn in the last 12 months, with the increase in Continental European run-off being countered by a decreased UK market
• Tied-up capital, operational costs and adverse loss development are the key challenges facing insurers in their run-off business in Europe
• The proactive management of run-off is moving up the agenda of senior management
• Climate related claims and claims related to the current financial crisis are seen as the major claims issues facing insurers over the next five years, however, legacy claims will still present a major problem for many insurers
• Greater understanding of available exit tools for extracting value from run-off business is required in EuropeUnlocking Value in Run-Off 2009