The efficient management of the claims process enables our clients to mitigate exposure and reduce costs. Acumen provides the following insurance and claims services:

• Establish claim handling practices with the client;
• Monitor and review claims and reserves to ensure policy and conditions have been met;
• Monitor and assess claims reserves;
• Timely payment of legitimate claims;
• Prepare, bill, collect and record reinsurance recoveries;
• Dispute resolution through payment, commutation or arbitration.

The use of commutations in a run-off strategy enables our clients to limit claims deterioration, achieve an accelerated finality, resolve disputes and liquidate assets. Commutations can be achieved on an ad-hoc basis or be part or the overall run-off strategy. Acumen’s approach to commutations is as follows:

• Establish a commutation strategy with the client;
• Determine the quantity and nature of the risks written and reconcile these with the assumed and ceded counterparties;
• Conduct a detailed analysis of the financial aspects of the book, including open balances, case reserves and IBNR;
• Using payout patterns and investment income assumptions to calculate a present value;
• Determine an appropriate commutation settlement at a discount to ultimate liability and negotiate a favorable commutation settlement with the counterparty.

The use of audits and inspections in a run-off strategy is an essential risk management tool and can enable our clients to mitigate their exposure and therefore reduce overall costs. Audits and inspections can be performed on an ad-hoc basis or be part of the overall run-off strategy. The critical information that can be determined from an audit is as follows:

• Exposure evaluation for the overall book of business or for a particular commutation target;
• Underwriting review to ensure the business underwritten adhered to the underwriting guidelines;
• Claim review to assess the accuracy and validity of claims and reserves;
• Premium review to ensure premiums were accurately accounted and ceded;
• Reinsurance review to ensure any inuring reinsurance is being correctly administered;
• Review the financial controls and procedures to assess the accuracy and timeliness of reporting;
• Provide information and data to support litigation and arbitration;
• Provide information and data to the actuarial analysis.

The efficient collection and commutation of reinsurance assets enhances our client’s liquidity, mitigates the impact of reinsurance company failure and can accelerate finality. Acumen provides the following reinsurance recovery services:

• Provide enhanced reinsurance reporting to ensure the expeditious payment of outstanding recoverables;
• Provide detailed tracking of recoveries by individual risk;
• Dispute resolution through collection, commutation or arbitration;
• The acquisition of receivables.

The accurate and timely recording and production of financial statements and management reporting information ensures Acumen and its clients are able to make effective decisions to ensure a continued cost effective run-off of the business. Acumen provides the following accounting services:

• Prepare financial statements in accordance with GAAP, IFRS and statutory filing requirements in client’s format on a monthly, quarterly or other basis as required by the client;
• Collect, record and reconcile premium, paid loss and reserve statements;
• Record and monitor accounts receivable, accounts payable and accrued expenses;
• Record investment activity and related interest income, and reconcile investment account balances;
• Coordinate the annual audit and actuarial study;
• Prepare the annual financial statement for regulators;
• Prepare an annual operating budget;
• Ensure compliance with the relevant insurance laws and Bermuda regulations and reporting requirements.

Our standard administrative services include:

• Manage bank accounts and maintain banking records, including bank reconciliations;
• Monitor and coordinate outside service providers, including independent auditors, actuaries and legal counsel;
• Monitor external asset managers for compliance with investment guidelines;
• Coordinate annual shareholder meetings including the preparation and presentation of meeting booklets;
• Assistance with monitoring security requirements e.g. letters of credit or reinsurance trusts.

Acumen’s in-house actuaries have extensive run-off experience and are integral to the process of determining the appropriate run-off strategy for our clients. Acumen provides the following actuarial services:

• Reserving;
• Establishing best estimate liabilities and extreme adverse scenarios;
• Valuing multifaceted liabilities that may have latent claim development or spiral reinsurance features;
• Arbitration and litigation support;
• Portfolio transfer assessment and stochastic modeling;
• Internal audit of actuarial functions.