To share the cost of long tail exposures with other carriers, the world’s largest insurance companies regularly turn to Arcina to locate additional historical coverage for their insureds. When an insured has already obtained coverage, there could be reluctance to investigate for additional coverage. Unfortunately, carriers all too often prematurely foreclose the possibility of identifying or finding additional coverage to share in losses and instead bear the brunt of costs. However, the cost/benefit of archaeology can be enormous, with most carriers unable or precluded from opening insureds’ files to search for additional coverage. Many leading insurers have recognized the benefit of engaging Arcina’s insurance archaeology services when faced with environmental or other long tail claims. We have successfully discovered hundreds of millions of dollars in coverage resulting in significant savings for our clients by reducing the time on risk for clients and identifying additional coverage to participate in sharing defense and indemnity costs.
Various circumstances can lead to premature file closure without any recovery. Missteps at the earliest stages of the investigation such as failing to retain evidence or inexperience in identifying a theory of recovery result in the closure of claims files. Arcina’s experienced team has worked with numerous insurers to conduct a systematic review of closed files for subrogation potential. The process includes:
- Identifying theories of recovery
- Providing guidance to pursue claims
- Administering the recovery process
- Reviewing past claim handling practices which prevent recovery
Our efforts have led to the recovery of millions of dollars for insurers.