Reserve adequacy studies.

Whether the reserves an insurer holds match what its claim files support, case by case and in total.

Reserve adequacy studies Claim audits and file scoring Estate claim adjudication and audits

About this practice area

Testing what is held against what is supported by the documentation in the file.

A case reserve is an insurer’s estimate of what it will ultimately pay on an individual claim; bulk and IBNR reserves cover claims not yet reported or not yet fully developed. Together they are the largest liability on most property and casualty balance sheets, and understating them can hide an insolvency until it is too late to prevent.

A reserve adequacy study reviews the claim files behind the reserves: the facts of each claim, the exposure, the handling to date, and the likely outcome. It then compares what is held with what the files support and reports the shortfall or redundancy for the book as a whole. Regulators, receivers, reinsurers, acquirers, and the company’s own management all rely on the result.

Three reserve tanks, auto, general liability, and environmental, measured against a required-reserve line; one tank rises to meet it and the short tank is flagged amber

Engagements

What the files support.

Studies for carriers, risk retention groups in liquidation, and books of specialty claims.

Testifying expert · Report, Trial

Reserve studies

Almost everyline of business

Trialtestimony in receivership proceedings

Reserve studies

Claim audit of an insolvent carrier’s property losses

2opinion reports

Randomsample of the claim population

Estate claims and audits

Reserve review of a taxicab risk retention group

Liquidationordered after the final report

Reserve studies

Other matters

Reserve study of a medical malpractice risk retention group in liquidationConsultingReserve studiesRead moreShow less

Retained by the South Carolina Director of Insurance to perform a reserve adequacy study of a medical malpractice risk retention group, in liquidation. Held reserves were increased as a result of the recommendations in Glynloen’s final report.

Also listed under: Reserve studies for carriers

Review of a claims department’s staffing, procedures, and settlement practicesTestifyingCarrier claims-practice reviewsRead moreShow less

Completed reviews and expert reports assessing propriety of Subject Company’s claim department’s staffing, claims handling policies & procedures, and overall fairness of Company’s claim settlement practices.

Also listed under: Fair claims practices and standards of care · Carrier claims-practice reviews & audits

Environmental claim book: reserves, coverage triggers, and allocationTestifyingCarrier claims-practice reviewsRead moreShow less

Retained by a Property and Casualty carrier to review a book of environmental claims and determine reserve adequacy, coverage triggers, and allocation, propriety of investigations and file documentation as well as apportionment of defense and remediation costs. The final report included expert opinions on claim handling and file documentation.

Also listed under: Carrier claims-practice reviews & audits

Claim audits and file scoring

Random-sample file scoring that measures how a claims operation is performing against its own standards and the industry’s.

View Claim audits and file scoring →

Estate claim adjudication and audits

Evaluating, adjudicating, and auditing the claims filed against an insurer in liquidation.

View Estate claim adjudication and audits →

Reserve adequacy studies.

Testing what is held against what is supported by the documentation in the file.

What the files support.

Reserve studies

Claim audit of an insolvent carrier’s property losses

Reserve review of a taxicab risk retention group

Other matters

Elsewhere in Claims & Reserve Auditing.

Claim audits and file scoring

Estate claim adjudication and audits

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