Article Abstract:
Collecting overdue funds from reinsurance companies requires an analysis of the reinsurance collection process. Ceding companies need to review periodically a reinsurers' ability and willingness to pay losses and their financial health. They must also provide enough clout for the reinsurance collection unit to do its job. A finalized treaty between the two parties can minimize any disputes and allows the collector, rather than a judge or arbitrator, to decide the limits of the reinsurance contract. If persistence and professionalism fail to recover overdue funds, arbitrate, litigate or write it off.
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Article Abstract:
The insurance industry and regulators suffer from a failure to communicate, and their adversarial relationship prevents progress on regulatory reform. Insurers are justified in complaining about rate suppression, but they should also realize the legitimacy of some areas of insurance regulation. Regulators should be aware of the link between rates and solvency, and should work with the industry towards the common goal of effective solvency regulation.
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Article Abstract:
Restructuring gives insurance companies an infusion of capital and increases their financial flexibility. However, companies need to assess the capital markets situation before they seek a major capital infusion from selling securities. Had Equitable Life Assurance Society of the United States opted to restructure to raise badly needed outside capital, it might be owned today by domestic policyholders and investors rather than a foreign company.
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