What are you actually disagreeing about?
Julian Ward, FCII
Reinsurance. Independent, expert, insight from someone who’s been there.
Tip: Be clear about what the apparent dispute or quantum difference with a counterparty actually is.
Issue: Are you questioning policy or treaty coverage? ?Before taking a formal position, have you reviewed the policy and/or treaty structure, terms and conditions with your underwriting and reinsurance teams? I have seen reinsurers reject a claim for several months before their underwriter confirms that his/her understanding as to the intended usage of a treaty was precisely the same as the cedant’s.
Lesson: conduct inwards looking, fact-finding, devil’s advocate reviews before taking an entrenched position.
Issue: What is the overall quantum involved? I have seen two reinsurers contesting and disputing various multi-million-pound contracts and accounts between them, only to discover that once the mist had cleared and books were reconciled, the overall net balance between them was only tens of thousands of pounds. Both parties quickly dropped the dispute.
Lesson: quickly get an accurate projection of what the ultimate claims and/or net balances might be. These may not justify - for either party - the time and legal expense to contest the matter.
Recovering accountant- consultant to insurance industry- forensics, legacy and new ideas
3 年I kid you not ……We had an audit of one of our clients..the auditor and the idiot on our side failed to notice that he was looking at a company with the same name but his reinsurer had “Limited” at the end of their name. The rule in exams is “RTFQ” -replace Question with contract
CTC Security cleared Scaffold & Access Professional
3 年The principle could be applied to any dispute,whether money, reputation or a general disagreement is concerned, surely a pragmatic, yet logical thought process?