Fri 24 Apr 2026 - What the session covers:
1. Financials of a solvent exit
We explore how stressed run off costs rise rather than fall. This could be due to fixed overheads not scaling down and higher professional fees, among other factors.
2. Why scenario design is so important
Drawing on our experience of scenario building workshops, we show how reinsurance feasibility issues, downgrade impacts, data limitations and operational constraints can make exit routes unfeasible.
3. Common gaps
Using findings from our gap analyses performed, we highlight common weaknesses in existing documentation. Examples include lack of exit triggers, unclear resourcing requirements and costs, barriers and risks not specific to the implementation of solvent exit.
4. Applying proportionality
We discuss how firms can get the size of their SEA right. This will focus on the risks, constraints and exit routes relevant to their scale and complexity.
Key takeaways
Attendees will learn how to build credible solvent exit scenarios that combine capital, liquidity and operational stress. Appreciation of what practical early warning indicators look like. How to assess realistic financial and non financial resource needs, and how to identify barriers to feasibility of a solvent exit. How to apply proportionality without weakening the analysis.
Supporting background
Insights are drawn from recent scenario workshops, run off modelling performed, and independent SEA gap analyses for multiple insurers.
Wendy Kris-Evans and Annabel Carpenter, LCP