The eighth edition of PwC’s Survey, produced in conjunction with Insurance and Reinsurance Legacy Association (“IRLA”) analyses questionnaire results from over 200 parties across Continental Europe and the UK.
The Survey shows that the size of the non-life European run-off market is now estimated to be around €242bn, an increase of around €7bn from the previous Survey.
The Survey also found that Solvency II is firmly back on the agenda, with 60% stating they would be putting increased focus on dealing with underperforming lines of business (from 44% last year).
The trend seen last year around a greater proportion of respondents classifying businesses as being in run-off earlier in its life cycle has continued. Over 60% of respondents now treat business from 2005 onwards as being in run-off – a further increase of 10% from last year. 81% of respondents classify some business written since 2000 as being in run-off.
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.