Insurance advisory

Restructuring

Value may be released in your company by changing the structure of your operations. For example, moving books of business into new entities or jurisdictions (e.g. Part VII transfers) can be effective from capital and tax perspectives.

The CLM team was responsible for creating and delivering the groundbreaking restructuring of a corporate with Asbestos liabilities - the first in the UK. We also advise on exit routes for 'blue chip' captives.

Strategic reviews

Give your Board peace of mind and put them in control of liabilities by understanding the options available to deal with them. For example:

• Exit options (sale, run-off, schemes of arrangement, reinsurance)
• Outsourcing vs. 'insourcing'
• Domicile and other tax structuring opportunities
• Modelling (e.g. the effect of future catastrophes)

Operational effectiveness (claims management)

Your operation may be efficient, but is it as effective as it should be?

Our CLM team will give an independent view of your operation and use its expertise and experience in this area to provide innovative suggestions for improvement, such as:

• Claims management strategy, including when and if to litigate / arbitrate
• Skills and claims audits
• Outsourcer / 'insourcer' reviews
• Reinsurance recoveries strategy
• Commutation strategy

Run-off services

An insurance business in run-off faces different pressures and is driven by different factors to an active insurer. Our CLM team understands this and is the leading specialist team for restructuring UK-based insurance companies in run-off.

Issues you may be facing and how we can help:

• Managing a run-off is a drain on management resource
• No or little strategic plan with detailed milestones exists to analyse when the run-off will conclude and the most appropriate method to achieve finality
• Retention issues for key staff and loss of knowledge
• An inadequate claims handling strategy to manage an increase in interest from potential claimants
• Limited resource to focus on cash management including reinsurance claims
• Ineffective IT systems and data to support the run-off

Larger companies, including composite insurers, recognise the need for a proactive approach to run-offs, rather than allowing them to last 20 years or more, during which time shareholder value is put at risk and frequently eroded or destroyed.

We can assist you with putting books of business into run-off or dealing with an existing run-off by identifying and analysing key areas of focus, including:

• Assistance with dealing with FSA requirements
• Assisting in the formulation of the run-off strategy
• Evaluating future investment income, claims handling costs and bad debt reserves
• Actuarial due diligence to estimate claims reserves.