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BT Policyholder Protection Blog
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27 Apr 2015 HOW DO HISTORICALLY LOW REINSURANCE RATES AFFECT HISTORICALLY LOW POLICYHOLDER SATISFACTION?

An article published on March 12, 2015, in the Risk Management Monitor reported on a recent worldwide policyholder survey demonstrating that insurance customer satisfaction with claims management is at an all-time low. At the same time, reinsurance rates are also being reported as the lowest in many years, contributing to the continuing “soft” market.  A “soft” market is typically good for policyholders who are buying or renewing insurance programs, so why the worldwide, pervasive dissatisfaction?   When reinsurance rates are low due to the historically high capacity in London, Bermuda and elsewhere, the cost of doing a primary and excess insurance business remains much lower than average. No major named hurricanes hit the U.S. in 2014. These factors contribute to the “softness” in the market…

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23 Jan 2015 “1-23-15 ALERT: VERMONT SUPREME COURT STRIKES DOWN AMBASSADOR IN LIQUIDATION’S 12/31/13 BAR DATE!

Today, the Vermont Supreme Court issues its opinion in the Ambassador in Liquidation case striking down the estate’s previously-published 12/31/13 bar date for final Proofs of Claim. The Ambassador Ins. Co. liquidation has been in process since 1987.  After the estate obtained over $300,000,000 in reinsurance and settlement proceeds from its former auditing firm, the estate essentially became “solvent”—paying Priority Four claims at 100 percent (plus interest). Seeking to bring the estate to a close, the liquidator set a final Proof of Claim date of 12/31/13 to require claimant-insureds to settle their underlying claims and submit them to the Ambassador estate. Many of the insureds have long-tail liabilities which are still developing and could not be resolved by the 2103 bar date. NICO, successor to…

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24 Nov 2014 SOFT INSURANCE MARKET

For those policyholders approaching year end renewals, bear in mind that the insurance, and importantly the reinsurance, markets remain soft. A lack of major 2014 hurricane activity and other catastrophic casualty losses have left the insurance market soft and driven down the internal costs of insurance (such as the cost of reinsurance premiums). Casualty insurers are posting major profits and are actively seeking new policyholder markets.   At renewal, policyholders should be presented with multiple, competitive options for casualty insurance by their brokers. Keep in mind that policyholders are in a strong position to negotiate terms and conditions of their insurance, including choice of their own defense counsel and scope of D&O coverage in particular. As the financial claims fallout from the recession has essentially…

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