When a "second
opinion" is desired on a book of surety losses or on the quality of a
surety claim operation, COP has the resources and experience to provide
useful analysis and recommendations.
COP
provides independent claim auditing services to surety companies and
surety reinsurers looking to verify reserve adequacy and procedural
compliance of either in-house staff or outside consultants. COP has
performed claim audits as part of due diligence for acquisitions, as
part of reinsurers' examination of cedants, and for primary sureties
seeking to assess their own operations.
Loss Analysis:
Surety managers are commonly
frustrated by the inadequacy of actuarial techniques developed for
the general property and casualty world when applied to surety. Such
techniques often provide distorted projections of surety loss, and
rarely relate losses to particular underwriting policies in force at
particular times. Over the years, COP has refined unique analytical
tools for forecasting surety loss development for actuarial
purposes. COP's proprietary methods are developed solely from surety
experience with numerous clients, and are built around the loss
development patterns that are peculiar to this exceptional,
medium-tail line of business. COP's surety loss development
analysis has been employed for a variety of purposes:
Determine IBNR levels
Determine premium rate adequacy
Adjust
underwriting guidelines
Develop
reinsurance presentations
Confirm
or contest internal or outside actuarial analysis
Perform
acquisition due diligence
Confirm
or contest ceding company projections (for reinsurers)
Loss
portfolio transfers
Process
Consulting:When sureties desire to
evaluate the quality of their claim handling operation, COP's
extensive experience with a variety of clients can be of help.
COP's process analysis can focus on any or all of these key
features:
Background and qualifications of internal personnel and
outside consultants and attorneys
