Verification of Creditors' Claims and Consultancy Advice to Liquidators and Regulators

The spate of insolvencies that continue to occur in the insurance and reinsurance markets of the United States and the United Kingdom in particular has created a need for the validation of creditors’ claims through independent and expert study. Many of the remaining larger claims that are presented to the estate of the liquidated company are complex and involve high hazard exposures such as asbestos, pollution, health hazard, and professional indemnity losses. In order to ensure an accurate evaluation of these claims and assist in the process of the equitable distribution of assets, technical research is often required.

We have gained considerable experience and secured a professional reputation by delivering results to liquidators in the United Kingdom, the United States, and Bermuda.

Our approach is tailored to the requirements of the liquidator of each estate. We do, nevertheless, recommend a strategic analysis of the portfolio to provide a framework within which to apply one or more, usually a combination, of Chiltington's consulting services.

The validation of creditors’ claims and the maximization of reinsurance recoveries are our two major obligations.

• Substantiating the claims in light of contract terms and representations;
• Multiple claims arising out of a reinsurance contract. However, we do not undertake an exhaustive analysis of each presentation; our approach is rather to evaluate a representative sample to determine the validity and assess contingent liabilities (including IBNR) by reference to the composition of the portfolio as a whole. An inspection of records can be the most expeditious means to achieve this, where amounts are material and/or there is concern about the account generally;
  Securing the reinsurance assets by a pro-active and direct approach. Our expertise in the field of commutation and our ability to evaluate security are of considerable benefit in this regard.

• Review and reconstruction of transactions;
• Provision of skilled resources for specific projects;
• Access to a network of experts, arbitrators, lawyers to render advice on specific issues and assistance in dispute resolution.