Box Under The Desk - Scenario 1 - 2009-07-02
A client had a substantial claim on a CAT loss submitted to the London market via a US broker (now defunct). One of the major players was a London firm now in a reserving Scheme of Arrangement.
We undertook a review of the original claim file, created a set of ceded billing documents and went to London to present them to the Scheme. They were accepted and a large dividend was issued ($300,000+).
We then decided to investigate other accounts with that Scheme and contacted various London brokers. Although we ended up confirming that all other cessions had been paid one of the London brokers “discovered” $20,000 in collections on the claim from other reinsurers that had not been remitted to the client.
Lessons:
- If you want to collect from a London Market Scheme you will need to closely coordinate the process with your London broker or alternatively (and our recommendation) do it yourself or use a third party (like Gray Wolf !)
- It is always a good idea when a claim has been ceded to go through a final reconciliation to ensure all balances have been collected.
- It is a good idea to do a complete reconciliation with your brokers on a regular basis to ensure all collected amounts have been remitted.
Contact Colin on:
E: coling@graywolfgroup.com
T: + 1 630-832-2728
Gray Wolf Group
226 N. West Avenue
Suite 104
Elmhurst IL 60126
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