Inspections, claims experience, loss prevention

"The quality of an insurer becomes evident when a claim occurs." This sentiment expressed by a client is equally applicable to reinsurers.

Insurers quite rightly expect reinsurers to process claims from treaty business and facultative acceptances quickly, in accordance with the terms and conditions and with a minimum of bureaucracy. After all, our clients also wish to meet their financial obligations towards their customers without delay. It should be remembered that reinsurance is also a financial service intended to avert liquidity shortages.

What stands us in good stead when assessing engineering claims – even those which are highly complex – is the rich practical experience gained by our engineers from their previous activities in industry and their current claims handling. Together with our clients, we wish to derive mutual benefit from the professional investigation of the causes of losses and the reliable assessment of liability issues.

Even before accepting or renewing completed risk policies or prior to the commencement of critical phases for EAR and CAR risks, our engineers travel with representatives of the clients to the particular operation or construction site in order to jointly clarify those issues which are crucial to the inception or continuation of insurance. A further function of such inspections is to make recommendations on loss prevention or to verify the implementation of such recommendations.

Similarly, when a substantial claim occurs – and especially if the business interruption loss is also insured –, a direct presence together with the cedant and perhaps a surveyor is necessary as an immediate response. This is the only way to obtain a precise picture of the circumstances and origin of the loss and to initiate the necessary measures jointly with the policyholder.

For the purposes of claims handling, we are dependent upon our cedants’ willingness to engage in trusting cooperation, since optimal claims support can only be provided when the mutual exchange of information flows unimpeded.