Loss Fund Management
Specialist Loss Fund Recovery That Unlocks Dormant Capital and Restores Control
Is capital sitting dormant in your Loss Funds?
Across the re/insurance market we estimate over $1 billion is languishing unnecessarily in Loss Funds, despite all claims being paid in full. Overstretched teams rarely have the resource for the detailed, forensic work needed to recover it.
How Pro Global Helps
Our Loss Fund specialists work with your internal stakeholders and your Delegated Claims Administrators and Third Party Administrators to identify, reconcile and, where possible, repatriate redundant funds, giving you faster settlement, lower banking and operational costs and full regulatory transparency.
Why choose Pro Global for Loss Fund Management?
More than $25 million of reserves released by Pro Global experts across two projects in 2022, and $19 million of Loss Funds validated as current and correct.
Our team has handled Loss Funds across the London Market for over a decade and has seen every reason funds go unaccounted for.
We work directly with Delegated Claims Administrators, Third Party Administrators, coverholders and brokers to identify who holds what and to secure repatriation.
We identify and reconcile both live and dead funds, validating values, shares and holders so that funds can be repatriated partially or in full.
Clear reports for claims leadership, monitoring with all stakeholders to ensure receipt of funds, and ongoing support, including fixing the processes that let funds go dormant.
Our Loss Fund management experts help clients identify and recover funds that would otherwise be written off and never deployed on their balance sheets.
A Simple Proven Review Process
STEP 1:
Data & Scoping
You provide UMRs, agreement roles and known fund values; we establish the scope of the Loss Funds involved.
STEP 2:
Investigation & Reconciliation
Using ECF and IMR access or a transactional audit, we identify where funds reside, with whom and in what shares.
STEP 3:
Repatriation
Once values, shares and holders are confirmed, funds are repatriated partially or in full via the broker.
STEP 4:
Reporting & Prevention
Reports for your claims leadership, monitoring until funds are received, and new procedures to stop funds going dormant again.
Proven results
Loss Fund recovery in practice
Two recent projects for global specialty (re)insurers show how the work is done: extracting data to establish the scope of the funds involved, identifying the DCA, TPA or coverholder holding them, and repatriating what is owed via the broker. Between them, these projects released more than $25 million of reserves.
Case studies
Managing Loss Funds
A leading global specialty (re)insurer asked for Pro’s support in the reconciliation and repatriation of 2016 and prior year of account Loss Funds.
Loss Fund Repatriation Project
A leading provider of specialty lines insurance and reinsurance asked for Pro’s help to reconcile and repatriate surplus Loss Funds, with reserves brought up to date along the way.
FAQs
Loss Funds are monies advanced to Delegated Claims Administrators, TPAs and coverholders to pay claims. Our service identifies, reconciles and recovers funds that are no longer needed, and puts controls in place so they are managed properly going forward.
It depends on the age and size of your delegated book, but across the market we estimate more than $1 billion is sitting dormant. In 2022 alone our experts released over $25 million across two projects.
A data set identifying the Unique Market Reference (UMR), your agreement role and fund value where known, plus ECF and IMR access under your permissions. Alternatively we can undertake a financial and transactional audit of the DCA or TPA.
Once values, shares and holders are identified and validated, funds are repatriated partially or in full via the broker, and we monitor with all stakeholders until they are received.
Yes. Our experts recognise the process flaws that lead to dormant Loss Funds and help you establish new procedures, giving full regulatory transparency and audit capability for your Loss Fund managers.
