Ambant reduces managing agents loss fund exposure by £500k

Ambant reduces managing agents loss fund exposure by £500k, strengthrning procedures and improving bottom line results

BACKGROUND
A Lloyds Managing Agent, unsure of their Loss Fund position, wished to identify, reconcile and repatriate any surplus and/or redundant Loss Funds held out in the market by Third Party companies such as, Brokers, TPA’s and Coverholder. Also implementing procedures ensuring best practices are met.

CHALLENGES
The problems facing Ambant is the lack of clarity, market wide, of Loss Funds. Internal records do not match with Brokers records which in turn do not tie back to Xchangings records.

The single biggest challenge is the quantity and quality of the data available, mainly due to the age of the accounts and the historical incorrect FIL code being used.

PROCESS

  • Identifying missing Loss Funds – funds provided by Insurers to Agents such as Brokers, Coverholders & Third Party Administrators where processes to track issues and returns have been neglected
  • Reconcile historic & current Loss Funds – the majority of historic Loss Funds in the Market are either over funded or need returning in full or part due to the scheme being expired or in run-off;
  • Historic Loss Funds are reconciled – any anomalies are recorded, we will investigate if any Cash Calls/Special collections have been double accounted also check to see if the correct Fees have been applied and taken from the Loss Fund
  • Recover surplus funds – arrange the return of funds where the attaching scheme is closed, any funds which show an unauthorised surplus or any funds which are over funded after a review of the reserves
  • Current & Live Loss Funds are identified – reconciled and reviewed to ensure the account isn’t over or under funded in conjunction with the reserve review
  • Implement new procedures – to provide a more robust process of monitoring and auditing Loss Fund positions, ensuring best practises are met and mis-management of funds is eliminated

 RESULTS
The project is ongoing and to date (December 2016) Ambant have managed to repatriate c. £500k

Upon completion of the project, Ambant will have provided, for their client, a full identification of all Loss Funds held on their behalf, reconciliation of valid Loss Funds and their current reserves. Repatriation of historic run-off / redundant / surplus funds.

Procedures implemented to ensure Loss Funds are recorded and reported on correctly and in a timely fashion.

For further information contact Craig Armstrong email: craig.armstrong@ambant.com or call Craig on +44(0) 207 264 0800