Problem
An authorised Australian Insurer has transferred all cancelled treaties and schemes to a separate run-off department.

At the same time one of the scheme agents relinquishes its claims run-off duties to the insurer. The scheme agents were also responsible for the administration and accounting to reinsurers.

Although the managerial staff are competent in their duties, they required assistance with this additional work load.

Solution
Coverholder Audit Pty Ltd was able to provide that extra assistance
by :-

• Assessing the terms and conditions of the original contract.
• Understanding the terms and conditions of the Reinsurance contract.
• Assessing the source material for the purpose of extracting relevant figures to be presented to Reinsurers.
• Preparing accounts to Reinsurers and an audit trail supporting those accounts.
• Producing an Operations Manual to assist with the future administration of this task.

Result
Reinsurance recoveries in excess of $1 million were immediately recovered and ongoing accounts could now flow to Reinsurers

Throughout this job on site training was also being provided to the appropriate staff.

Problem
An Australian Insurance Company was placed in liquidation and the Liquidator required people with extensive insurance experience to assist in the the run-off of the company.

• Gathering information from original source documents such as cash journals, claim files, reinsurance brokers statements and the like.
• Establishing whether reinsurance recoveries had been correctly allocated to the correct reinsurance contracts.
• Assisting in the management of outstanding claims.
• Issuing of ongoing reinsurance accounts to Reinsurers including outstanding loss figures.

Result
With the accuracy of the information compiled by Coverholder Audit Pty Ltd, the Liquidator was able to negotiate commutations with older underwriting years in confidence and maintain up to date accounting for active reinsurance contracts.