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Reinsurance Auditing Services

Reinsurance Auditing Services
The Reinsurance Audit Services of Alan Gray LLC provides a wide array of services to domestic and foreign Ceding Companies and Reinsurers. Audits cover excess of loss and quota share contracts for all business lines including environmental, mass tort, construction defect, and workers’ compensation. The audit staff is made up of seasoned professionals with expertise in Claims, Underwriting, Actuarial, Systems, and Accounting.
Services include:
  • Reinsurance audits in support of commutation pricing and settlement discussions
  • Arbitration and Litigation Support including expert witness testimony
  • Best practice operational reviews
  • Perform reserve adequacy audits
  • Due diligence support
  • Reinsurance Collections – Recoveries


Data Quality Review

A purchaser of a global reinsurance book utilized Alan Gray after the transaction to review the quarterly reinsurance accounts, verify that all reported loss dates fell within the transaction period, determine that all recoveries were credited to the gross paid amounts prior to the application of reinsurance and that all available reinsurance was applied. Sampling less than 20% of the book, Alan Gray was able to identify in excess of $15M of payments made outside the transaction period.

Account Reconstruction
On behalf of an insolvent carrier in the State of Pennsylvania Alan Gray was engaged to review 5 years of premium and loss transactions that had never been billed to its quota share reinsurers. Alan Gray identified the reinsurers for each year of the program and notified them of the pending adjustment. From original systems and hard copy documents, Alan Gray produced the 5 years of missing accounts statements totaling an amount due of $20M.
Reserve Adequacy
A client requested a reserve review of 800 assumed Workers’ Compensation claims to determine if the claims were adequately reserved. The claims were handled by more than 75 TPA’s. Based on the review and AG’s recommendation the client increased their reserves by $18M.