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