Mark Norman

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Mark Norman Head of Commutations and Dispute
Resolution
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THE HIH EXPERIENCE REINSURANCE ISSUESWARTS
ALL
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HIH SOME BACKGROUND AND REASONS FOR ITS DEMISE

• Major Liability Insurer
• But Poor Underwriter!
• Voracious Appetite for Growth
• But Poor Acquirer!
• Few Management Controls
• Meaning Poor Records
• Poor Reserving

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REINSURANCE STRATEGY

• Improve the Fundamentals
• Data Confidence
• Debt Collection Good cop!
• Pro-active!
• UK v Australia
• The Role of the Brokers

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REINSURANCE STRATEGY

• Dispute Resolution Bad cop!
• Strategy
• Forum
• Arbitration vs Litigation Pros and Cons

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SPECIAL CHALLENGES

• Set-off
• Lloyds
• Facultative Reinsurance
• Requirement for an Early Contract Reconciliation
• Third Party Requirements
• Potential/Existing 562(A)/(4) Creditors
• State Scheme
• Other HIH Entities

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SPECIAL CHALLENGES

• Limitation
• Strategy
• US vs UK
• Pay as Paid Déjà vu all over again!
• Some Background
• Why Not Arbitrate?

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FINALITY STRATEGIES

• To commute or not?
• Pros and Cons
• Contract Specific Or Global?
• Transparency (I)
• What Are The Issues?
• What Is The Timing?

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FINALITY STRATEGIES

• Transparency (II)
• Early Exchange of Valuations
• Transparency (III) A few words about IBNR
• Risk Profile
• Prudential Margin the X Factor

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THE FUTURE

• Carrot Or Stick?
• Timing Finality For All

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Mark Norman Head of Commutations and Dispute
Resolution