Every cedent and every reinsurer has on their balance sheets a number of contracts that are sitting in limbo with balances due or owing. Some of them are with entities in runoff or in insolvency proceedings. Others are legacy pieces of business with claims slowly running off. Still others are live disputes with relatively modest balances. With the high cost of collection, especially if it involves full-blown litigation or arbitration, these balances may sit on the company’s books for years (or decades). This blog post suggests some ways to help clean up the balance sheet.

Continue reading “Cleaning Up the Balance Sheet: Why Not Resolve Lower Value Reinsurance Disputes Now?” →