Collecting what is owed
Considering the complexities and specificities of the London Market, managing reinsurance recoveries in a timely manner can often represent somewhat of a headache for cedants. As such, turning to a third party to provide support is becoming increasingly popular.
One such organisation that has done so is the Swiss Pool for Aviation Insurance (SPL), an insurance pool scheme that covered hull, liability and accident risks. The pool was put into run-off in 2007.
Rudolf Kellenberger, president of the board of the SPL, says the pool being placed into run-off meant a shift in focus for the organisation, from active underwriting to managing a complex discontinued legacy portfolio. As this was not the core expertise of its members, they decided that the administration of the pool should be handed over to AXA Liabilities Managers Switzerland.
Historically, the pool had purchased reinsurance protections of which a large proportion was placed through the London Market. Given the revised strategy of the pool, emphasis was placed on accelerating the run-off of the pool’s reinsurance asset.
“With this in mind, a dedicated partner with London Market expertise was required, one which could provide focus on legacy reinsurance and customised client solutions,” says Kellenberger.
“We considered a number of options and having considered the importance of our specific requirements, we chose Helix as the preferred service provider.”
Helix specialises in work of this type. Based in London, its clients are mainly based in the US or Continental Europe—companies that placed business in the London Market but which sometimes lack a presence on the ground there and the intimate knowledge of the sector that brings.
Kellenberger says that Helix has met the targets it was set. “From the start the SPL had ambitious targets for its run-off strategy. The SPL managed to exceed these targets, and the collaboration with Helix was an important factor in that.”
Liquidity and cash management are of paramount importance to the SPL. Integral to the success of cash-flow is the relationship between the SPL as the cedant and Helix as the broker, and in turn the collective relationship with SPL’s reinsurers in making effective reinsurance collections and seeking finality solutions through commutation.
“The SPL had ambitious targets for its run-off strategy. The SPL managed to exceed these targets, and the collaboration with Helix was an important factor in that.”
The role of Helix is primarily to support the SPL in managing the reinsurance asset placed through the London Market. Most importantly this requires timely and efficient presentation and collection of reinsurance billings which in turn ensures that the cash-flow back to SPL is done swiftly. Helix’s dedicated support through an established network base, transparent approach and established market reputation all play a pivotal role in meeting the SPL’s requirements.
“In close collaboration with the SPL, Helix has delivered unique customised solutions. Through this added value we were able to accelerate the run-off of our London-placed reinsurance asset which brought with it timely results in line with the ambitious strategy of the pool,” Kellenberger says.
He says that the working relationship between the parties has also been smooth. The SPL’s reinsurance manager has a close working relationship with a dedicated client account manager and also specialised claims brokers within Helix.
