The seventh edition of PwC’s Survey, produced in conjunction with Insurance and Reinsurance Legacy Association (“IRLA”) analyses questionnaire results from over 150 parties across Continental Europe and the UK.
The size of the non-life European run-off market is now estimated to be around €235bn – an increase of around €11bn from the previous Survey. This has been in part driven by business being classified as run-off sooner than evidenced in previous Surveys. The figure below shows that over 50% of respondents now classify business from 2005 onwards as being in run-off, with 22% considering business since 2010 to form part of their discontinued book.
While asbestos remains the most challenging exposure respondents in Continental Europe also cited pharmaceutical claims as a major issue. Medical malpractice, European motor liabilities and mis-selling exposures were also highlighted as providing a challenge.
The Solutions for Discontinued Insurance Business team at PwC has access to more than 200 specialists focusing on providing restructuring and operational consulting services to companies in the insurance and reinsurance industry with run-off business. The team is able to offer advice on a range of issues including bringing finality to run-off and considering options such as sale or transfer of liabilities.
Previous editions available here:Sixth edition - A Survey of Discontinued Insurance in Europe