The insurance industry has a long history of managing complex long-tail liabilities. In some cases, these liabilities grow so burdensome that they require specialized runoff solutions and as market conditions have evolved, so too have the shape of these runoff transactions and the runoff industry itself.
These legacy specialists, like all companies in the runoff sector, are essentially performing the same functions that any traditional insurer or reinsurer would in a runoff scenario. The specialist’s key differential is that they’re not really involved in actively underwriting business. Their sole purpose pivots mainly around transacting on those legacy blocks of business.
