The legacy run-off market has witnessed enormous growth in the
past decade and developed into a key component of the global
insurance market, with non-life liabilities in run-off now
estimated to be in the region of $800bn.
Legacy business is no longer confined to long-tail asbestos and
environmental liabilities. Solvency II and increased regulatory
scrutiny, Brexit and the developing regimes for business transfers
in the US, are provoking interest in books across a number of
business lines, and of more recent vintage. A surge in deal
activity across an increasingly wide range of business lines is
predicted in the post-COVID-19 environment.
Legacy acquirers will be looking to take the cost out of the
claims process and manage claims with a greater level of
efficiency. Concerns will continue to exist about the potential for
future legacy claims lines to develop, revealing previously unknown
and emerging risks.
