Old business presents new challenges

Schemes of arrangement are becoming so popular that not only have they crossed the Atlantic to the US, but insurers and reinsurers are starting to see their benefit in central Europe.The lure of quick settlements, cash in hand and the ability to draw a line under business in run-off has made them the vehicle of choice for both stakeholders and shareholders alike.And with more and more firms putting non-core business into run-off - in the US an estimated $100bn to $200bn in reinsured reserves