16th May 2022
Delegates are heading to Brighton for the Insurance and Reinsurance Legacy Association (IRLA) congress 2022 today and Steven Goate, explains that the market is growing and there is highly likely more to come.
It came as little surprise that this year’s IRLA Congress sold out within a fortnight.
The legacy market continues to grow and with changes to regulation around the runoff sector in the United States, North America is likely to see huge opportunities in the years to come.
Those opportunities are reflected in the type of delegates which will be at the Grand Hotel in Brighton. The growing recognition of the opportunities the legacy market can deliver has attracted new investment vehicles to attend this year’s event and they are being joined by the major (re)insurance brokers who are increasingly being asked to look at new ways of mitigating legacy risks and are now playing an ever more active role in the sector.
They will be alongside the major acquisitors in the market which continues to be active as they seek new deals and live underwriters review their future strategies as the hardening market continues.
While the US is seen as a land of opportunity, in the UK there are growing levels of legacy activity in the Lloyd’s market which is likely to increase the number of deals we will see in the coming months.
The market is buoyant, and the short term future looks extremely positive.
However as the IRLA agenda highlights while the future for legacy and run off business is increasingly secure it cannot be said for those that are tasked with executing it.
This year there is a session which focusses on the need for the runoff market to become more active around how it is to attract the talent which will form the next generation. As an industry (re)insurance has always faced a fight to attract talented young people and within the industry there is now collective agreement that the legacy market needs to better highlight the rewards that a career in the runoff sector can deliver. That includes the need to promote greater diversity, bringing with it different perspectives and a wider skill base.
For Davies we continue to work with clients across the spectrum of the legacy sector to provide support and services. For many of the new investors they have the capital but not the staff to manage the investment once the deal has been completed and all too often the books acquired do not come with the staff needed to operate them. It is where our expertise can provide a solution, particularly around the back office and collection capabilities.
As one of the sponsors of the congress we have the opportunity to provide a view on the market and one area which is likely to feature heavily in years to come is legacy issues around the MGA sector.
As the MGA market matures the debate around run off and legacy books has increased, and I would look to see the MGA opportunities included in the runoff market’s future agenda.
The theme of this year’s congress is “what will your legacy be?” The market has opportunities both in the UK and across the world. The legacy we leave will be how well we have been able to address those opportunities and create a supply chain of talent that will see the sector thrive in years to come.
If you would like to continue the conversation, contact Director of Intermediary Services, Steven Goate on firstname.lastname@example.org.
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