At times, insurance carriers decide that -- for any number of reasons --they need to divest themselves of certain insurance policies, books of premium writings, or lines of business. Certainly, some companies merely shift their focus for the future and wait for the undesirable or unwanted business to lapse and go away by itself. Unfortunately, that option is not always available.
Some policies have "long tails"; i.e., the potential for claims to develop many years after the expiration date of the policy. These would include contracts with exposures for such things as: asbestosis, pollution, medical malpractice, and others. In those cases, to wait could entail years and years of unknown and unanticipated exposure. Under such circumstances, the carrier may indeed want to finalize their involvement and put the coverage behind them.
Letting Go of Long Tails
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