September 2007

Strategies for Discontinued Insurance Business

This Norton Rose paper examines the merits and drawbacks of the strategies available to insurers wishing to discontinue a particular line of business. There are six principal strategies for dealing with discontinued business which are considered: retention of the book and run-off to expiry; outsourcing the run-off to a third party service provider; reinsurance by way of loss portfolio transfer; portfolio transfer to another carrier; and schemes of arrangement. As well as insurance companies, this paper examines Lloyd’s syndicates.

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