Willis Re may be positive about the market changes that could benefit mutual insurers , but Barry Costi-Mouyia, Technical Claims Director of Willis Re, has indicated that while many of the claims issues arising from catastrophe losses are common to the insurance industry, some are much more acute for mutual insurers.
Speaking on Tuesday at the 2013 International Cooperative and Mutual Insurance Federation (ICMIF) Claims Seminar, he said: “Mutual insurers’ policyholder memberships are typically drawn from similar homogenous groups. These concentrations can lead to the impact of catastrophes being felt more sharply.”
Praising mutuals for providing “market leading customer care,” Costi-Mouyia noted that “the commitment of mutuals to their customers is never more needed by members than in the aftermath of a major catastrophe.”
He pointed out that mutual insurers may lack the global resources that some of their multi-national peers can deploy, and many do not have recent experience of a major catastrophe. However, he also pointed out that, “for a mutual insurer there is no reason why lack of experience or limited resources should adversely affect the management of catastrophe losses if a robust claims management and business continuity plan is available for implementation.”
Costi-Mouyia also stressed that “solid preparation and an understanding of the requirements likely to be placed on the mutual insurer by its reinsurers in a claim situation is crucial,” noting that “these are key to ensuring efficient and timely reinsurance recoveries where it is recognized that cash flow is a prime consideration.”
Source: Willis Re
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