AM Best’s Dan Hofmeister explains how Bermuda’s legacy specialists are turning run-off from a dumping ground for difficult liabilities into a strategic ‘hygiene test’.
For years, run-off was viewed as a niche corner of the insurance industry, associated primarily with legacy liabilities, distressed portfolios and some of the market’s most difficult claims.
Today, that perception is changing. As social inflation continues to pressure casualty reserves, insurers seek greater capital efficiency and, as new forms of capital enter the market, run-off specialists are playing an increasingly influential role across the re/insurance value chain.
