An opinion piece that I penned for Law360 has been published this week. In “Policyholders Must Object to Insurer Reorganizations,” I outline my opposition to the overwhelming majority of insurance company reorganizations and detail the two main species of transactions: the thinly capitalized spinoff and the loss portfolio transfer. I also call on insurance policyholders to take an early, active role in raising their voices against such so-called capital-based solutions.
As I write in the article:
“If you think I am an alarmist, just ask policyholders of RSA, OneBeacon or Home Insurance Co. how much they are enjoying their now-defunct coverage.
When I testified as an expert witness against the RSA and OneBeacon reorganizations, only a handful of policyholders showed up to object.
When retroactive reinsurance deals are announced, policyholders should write their objections to the relevant insurance commissioner. It is time for policyholders to organize and object en masse every time the writing is on the wall.”
You can read the entire article on the Law360 website. A subscription may be required. Or you can download it here.
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Jonathan Terrell is the Founder and President of KCIC. He has more than 30 years of international financial services experience with a multi-disciplinary background in accounting, finance and insurance. Prior to founding KCIC in 2002, he worked at Zurich Financial Services, JP Morgan, and PriceWaterhouseCoopers.
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