Run-off audits focus on underwriting practices and risks written immediately prior to the cancellation or lapse of a delegated underwriting authority agreement. Our analysis will include commentary on short- and long-tail liability exposures, if any, as well as an opinion on risk management issues that may impact results.
For Lloyd’s Coverholders, the report will include a review of the Coverholder’s ability to manage ongoing documentation, premium remittance and claims for the expected period of run-off.
- A run-off review will allow you to better forecast expected results;
- Identifies any issues pertaining to liabilities arising out of risks written up to the time of cancellation of the underwriting authority;
- Identifies an expected end to the run-off period based on an assessment of the portfolio;
- Provides an assessment of the Coverholder or MGA’s ability to issue endorsements and manage cancellations during the run-off period;
- Provides a review of accounting procedures to ensure premiums and any loss funds held will be handled appropriately;
- Provides an assessment of the Coverholder or MGA’s processes with respect to claims in the years following the cancellation of the agreement, particularly with respect to Products Liability written on an occurrence basis or Professional Liability written with an Extended Reporting Period;
- Identifies any issues with respect to staffing or management that may impact the run-off period.