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Making the transition from underwriting to run-off results in a fundamental shift from an underwriting to a claims management business. This has a profound impact on the core management team, cash flow profile and the claims and reinsurance management strategy. Effective business planning is vital.
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Run-off may be a non-core business for a broader insurance group. As it requires specialist expertise, support may be required in developing and implementing an appropriate strategy at group level, including perhaps some form of accelerated closure of the business.
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Investors or management may wish to outsource a run-off business operation and may require assistance in implementing a strategy of this nature.
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Regulatory issues are of paramount importance and management may require support as part of the overall transition process.
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