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Client success stories

Solvent and insolvent pool (multiple participants)

Scheme Management – Redundant reserve review

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Scheme management – Redundant reserve review

 

Client description
• EAUA Pools (Marine, Aviation and Non Marine), multiple lines of business placed 1954 to 1992
• 19 solvent and insolvent companies

 

The Client’s requirements
Validation of case reserves ahead of scheme of arrangement, in order to:
• Maintain accurate and meaningful claims figures
• Address the issue of potentially redundant reserves

 

Our solution
• Review of all non moving (over 18 months) outstanding loss reserves in excess of $30k
• Incorporating in depth analysis of broker files. Required legacy broker tracing in many cases where original placing broker no longer administers the business
• Project involved detailed analysis to determine effective methods of obtaining data incorporating:
  • On-site broker visits
  • Targeted mail-shot campaign to identified broker
  • Provision of significant management information to pool members to identify savings at individual client level

 

Services/Value delivered
• Identified 4% of total reserves as redundant, resulted in $1.7 million reserve reduction for the client
• Ensured reserves were decreased accordingly resulting in valid and accurate base data being available for financial accounts, commutations and actuarial reviews
• Recommendations strategies to apply where responses not received by brokers, resulting in further reserve savings

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