Written by a claims manager with 20 years’ experience, this book presents a unique, comprehensive and practical approach to reinsurance claims management. It provides an in-depth analysis of current issues, with practical tips that enable the reader to understand current themes and trends.
Chapters include: The current reinsurance environment; Current challenges for reinsurance claims departments; Modern reinsurance claims management; and Developing a strategy for discontinued business.

Author(s): Wedge, Peter
Published: 2005
Binding: Paperback
ISBN 10: 1856093093 ISBN 13: 9781856093095

Contents

Foreword

Preface

About the Author and Contributors

1      Introduction

1.1    Prologue

1.2    The Growing Importance of the Reinsurance Claims Function

1.3    The Definition of Claims Management

1.4    The Main Players in the Claims Management Industry

1.5    The Distinction between Insurance and Reinsurance

1.6    A Brief Comparison between Traditional and Modern Claims Management

1.7    The Impact of Claims on Underwriting

1.8    Traditional Reinsurance Claims Management

2      The Current Reinsurance Environment

2.1    Introduction

2.2    The Demand and Supply of Insurance and Reinsurance

2.3    Consolidation in the Reinsurance Market

2.4    Focus on Charging Technically Adequate Reinsurance Prices

2.5    Trend to Underwriting Non-proportional Business

2.6    The Growth in Latent Claims

2.7    Increase in Terrorism

2.8    The Events of 11 September 2001

2.9    Increase in Catastrophes

2.10  The Underwriting Cycle

2.11  Developing Exposures — Trends in the Us

2.12  US Versus English Legal System

2.13  Legal Issues

2.14  The London Market

2.15  The Role of Reinsurance Brokers in the Claims Process

2.16  Developments in it Systems

2.17  The Effects of the Above on Reinsurance Claims Management

3.    Current Challenges for Reinsurance Claims Departments

3.1    Introduction

3.2    Role of the Claims Department

3.3    Why the Need for Claims Management?

3.4    Practical Claims Management

3.5    Requirements for a Good Claims Department

3.6    Latent Claim Handling Processes

3.7    Pharmaceutical Drugs Claim Handling Processes or US Losses

3.8    Claim Audits

3.9    Developing Reinsurance Claims Best Practice

3.10  Managing Reinsurance Disputes

3.11  The Role of External Lawyers and Litigation in the Reinsurance Claims Process

3.12  Commutation

4.    Modern Reinsurance Claims Management

4.1    Empowerment — the Relative Rise in the Status of the Claims Department

4.2    Increased Expertise and Talent

4.3    More Structured Decision-Making Process

4.4    Use of Specific Claims Departmental Objectives

4.5    Use of Professional Consultants

4.6    Involvement of Claims Staff in the Underwriting Process — the Prevention of Problems?

4.7    Involvement of Underwriters in the Claims Process Resolving Problems?

4.8    Improved Reserve-setting

4.9    Conclusion

5.    Developing a Strategy for Discontinue Business

5.1    Introduction

5.2    Compiling a Strategy for Discontinued Business

5.3    Stage 1 — Setting Goals

5.4    Stage 2 — Analysing

5.5    Stage 3 — Designing the Solution

5.6    Stage 4 — Implementing the Solution

5.7    Stage 5 — Review

5.8    The Use of a Central and Dedicated Run-off Unit

Index