Managing a business in run-off

Document description

The run-off industry is large. It has grown as a consequence of well publicised losses arising from, for example, asbestos, pollution and catastrophe exposures. The main types of run-off portfolio relate to Companies, Lloyd's syndicates and Agencies / pools. There are around 250 Lloyd's syndicates and 125 UK non-life companies in run-off. Of the non-life companies over 20 are in the insolvency process. The gross liabilities involved are estimated to exceed Ł25bn. In these circumstances it should be no surprise that particular features of the industry are: claims management, reinsurance recovery and, inevitably, litigation. The players directly involved in the industry are 'Advisers', 'Run-off management companies' and 'In-house' professionals at Lloyd's and within insurance companies.