Future Insolvency Battles May Center On Lower Assets, More Policyholder Competition


Lower investment returns means insolvent insurers will continue to have less to offer frustrated policyholders.


It’s becoming a little more aggressive. It’s going to become tougher. There’s less money so people have to scream a little louder.


R. Mark Keenan, Anderson, Kill & Olick


The economy and the recent recession are the biggest factors shaping the environment for insolvency litigation, Mark Keenan said. Reduced investment returns mean insurers have fewer assets to disburse, which in turn means that policyholders have to fi ght harder for their share.


“I’ve dealt with liquidators in the past that try to give excuses as to why it takes 25 years. It doesn’t need to take 25 years. Even if there’s reinsurance they can cut deals. You can determine that. That’s why you have courts,” Keenan said. “My overriding view is that people in the past have been a little more lackadaisical because they had other sources of money. Because of this recession, things may get a little tougher.”


Copyright © 2010 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15