Reinsurance Asset Management and Run-off

As a result of the soft market in the late 1990’s, cedents and reinsurers were not spared by the problems facing the insurance industry. Most companies suffered from the same under-reserving practices with respect to long-tail claims, including asbestos and environmental losses, derived from policies in the 1970’s and 1980’s. As a consequence, depleted reinsurance recoveries inevitably became prevalent because of mergers, insolvencies and premature commutation releases. In addition, the development of information technology/data management challenged executive teams to make solid decisions commensurate with legacy results of its reinsurance. Despite significant system enhancements and archiving projects, management is faced with an enormous collection effort given the significant liabilities recorded and decreased staffing.

Navigant offers a full range of reinsurance consulting services, including paid loss collections and commutation negotiations, in depth claims reviews, and underwriting analysis. We understand the importance of maximizing the reinsurance asset based on our extensive work with companies in run-off with problematic books of business. Our comprehensive knowledge of the industry and relevant expertise covers both the inwards and outwards portfolios. We offer an effective, well-resourced service, including an established network of contacts where we have successfully completed commutations based on the client's parameters.