Business

A prosperous run-off market this year

According to a new report from Global Insurance Law Connect (GILC), insurance and legal experts expect the number of run-off deals to increase this year. The report investigated the impetus for legacy businesses in both mature and emerging markets and collected data from member firms in 20 countries.

“This is a huge market,” said Jim Sherwood, chairman of GILC. “”PwC2019 Global insurance market run-off survey Lifeless spill reserves are estimated at around $ 790 billion worldwide, and legacy management is part of the “new normal.” As always, it’s tempting to gain insights into outflow sector trends from such a wide variety of markets. “

Sherwood said the GILC findings can be summarized as “the law has curbed growth.”

“One universal truth is that insurers are looking for opportunities to sell themselves from unwanted legacy portfolios in all markets,” he said. “Some of the exact drivers may vary, but we see a common pattern. In markets where regulations allow portfolio transfers, creative solutions thrive and multiple parties are flexible. Cooperate in a way and often give better results to all parties. Still, in many markets, spills are an untested concept, and in multiple regions regulators are willing to accept spills. Believe it is, but insurers don’t want to put themselves, legal experts forward as the first test case to tell us. As a result, the presence and interest of experts in this sector Nevertheless, there are many regions around the world where transactions do not take place. “

Sherwood said there were multiple reasons for this.

“COVID-19 damages the reserves of many international insurance companies, changes the profitability of some key business areas, and surveys everyone in the industry on historical and current contracting operations. I was forced to do it, “he said. “While Brexit and Solvency II and IFRS 17 requirements will continue to serve as a driving force, the number of” whole entity “transactions will also increase in the United States as the use of IBT (Insurance Business Transfers) increases in various states. doing. “

A prosperous run-off market this year

Source link A prosperous run-off market this year

Back to top button
Close