Run-Off and Discontinued Business (Non-Life)

In case of a discontinuation of certain business areas or products due to economical or strategical reasons, typically the run-off remains within the insurance company which is mostly accommodated by high administrative efforts to completely finalise the business.

Moreover despite of stop taking on further risks high volatility in earnings and additional capital allocations due to IBNR, inflationary or legal adjustments to claim reserves are still possible. Here solvency models can be a clear indicator for efficiency for the transfer of insurance portfolios to external run-off specialists.

The following services can be offered:

For ceding insurance companies:

• Qualitative evaluation of loss reserves
• Evaluation of work and business processes for loss reserving and claims settlement
• Analyses of existing reinsurance cover and credit risk respectively
• Work out a plan to commute losses/contracts
• Estimation of possible capital savings and impacts on balance sheet/income statement

For assuming specialist insurer:

• Collecting and evaluation of policies/contracts including reinsurance coverage
• Evaluation of reserve positions, especially of individual loss reserves
• Highlighting of unusual risks and losses
• Investigation in legal disputes for claims
• Effects of future loss scenarios on the financial functions underlying policies/contracts