ISL - Articles and Tips - Predicting Insolvency?

Articles & Useful Tips

Predicting Insolvency?

The following is a suggested checklist:

Poor reserving

Greedy underwriting

Overtrading

Undercutting rates

Insufficient capital

Dividending out profits that the company needs to keep in reserves

Moving into fresh areas

Rapid expansion

Expansion against the trends

Insufficient reinsurance

Bad reinsurance

Keeping bad company - even if unwittingly

Subject of fraud

Incompetent management

ISL is grateful to Trevor Jones of Insurance Security Services for this contribution.