quotationMr Bill Rookes has been instrumental in resolving three old contentious issues for KIC through his experience and connections with the Reinsurance markets. Particularly significant was that in all these cases, imminent litigation or arbitration proceedings were avoided, thus saving time and costs for both parties. We have no hesitation in recommending the services of Accord Re, and in particular of Mr. Bill Rookes.

Kuwait Dr. Ali Al Bahar, General Manager, Kuwait Insurance Company

Commutation negotiation

Commutation can be described as “the termination by mutual agreement of all past, present and future obligations between the parties to a reinsurance contract, in consideration of a final cash settlement.” The benefits of commuting can be summarised as follows:

  • Effective tool for reducing exposure.
  • The resolution of disputes.
  • The reduction of administrative costs.
  • The elimination of weak or non-performing security.
  • Finality.

Accord Re has developed a significant body of experience in negotiating commutations internationally for both ceding companies and reinsurers. We work closely with our clients to produce an appropriate and effective strategy for closing the deal. Our service includes, but is not limited to:

  • Face to face meetings.
  • Identification and reconciliation of business exchanged between the parties.
  • Reconciliation of paid and outstanding loss data.
  • Review and interrogation of broker records to free up trapped funds.
  • Advice on the appropriateness of IBNR provisions.
  • Assistance in the drafting of the final commutation agreements.