A new age of run-off?

The world of run-off is changing. Undoubtedly there is still plenty of focus on the traditional run-off liabilities (eg, US asbestos, pollution and health hazard claims) from owners of legacy business which have long been the cornerstone of the industry.

However, while these traditional run-off liabilities still occupy significant resources, live insurers are increasingly classifying more recent lines of business as run-off. Consequently the legacy market now comprises more recent books of business written in the last 10 years rather than several decades ago, including motor, employers’ liability and medical malpractice. In the most recent PwC Survey of Discontinued Insurance Business in Europe nearly 70 percent of respondents now classify business written since 2005 as run-off.