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Run-Off management
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Once a company has decided to cease with a particular insurance activity, the question is whether to Do It Yourself or to exit. If you decided to keep it, the process of managing the run-off will require:
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Development of a distinct run-off strategy
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Identification of pitfalls and problem areas
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Structural considerations
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Timing and cost
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Regulatory aspects
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Hampden has a unique experience in managing the run-off of a large number of portfolios as a service provider, as well as our own companies. We can advice on all aspects of the process following a decision to go into run-off, and provide part or full outsourcing of any relevant activity.
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DIY – considerations
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Run-off takes a long, long time and will incur substantial administrative costs
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Staff motivation
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Conflict with ongoing business areas
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Reputational risk
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Philip Singer, Tawa:
“Run-off’s are not like fine wines – they don’t improve with age”
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