Strategic and financial changes within the industry create the need for specialized, and cost effective, services in the handling of runoff business for discontinued lines or books of business.
Run Off Services
In some market cycles, insurance run off becomes a systemic industry problem requiring skilled professionals to identify, control and solve the historical profitability issues with the business relative to current market conditions and current law. Runoff business, particularly that business which is exposed to the U.S. Casualty and London Markets, is subject to significant underwriting and financial risk which should not be left to secondary talent of a going concern.
The professional personnel of Wellington Financial Services (“Wellington”) are highly skilled in the operation of property and casualty companies. The organization is accredited as a Lloyds Broker to make settlements directly with Lloyds of London syndicates. With approximately 30 individual programs involving over $1 billion in runoff monies, resulting runoff administration services encompass:
- Verification that contracts and/or risks accepted is valid and properly documented;
- Accounting and reporting for the transmission of funds related to premiums, claims and other cash transactions including transfers between our clients and their reinsurers;
- Policy administration of in force policies, including call and fulfillment centers; and
- Claim services, including the processing of claims by experienced professionals utilizing customized technology systems.
The Wellington staff consists of experienced, senior level individuals proficient in the appropriate management of insurance run off from perspectives including management of issuing carrier, reinsurance, regulatory and legal governance considerations.