Reducing claims exposure of Puerto Rico´s 2017 Hurricanes María and Irma is possible! - Pro Global

Reducing claims exposure of Puerto Rico´s 2017 Hurricanes María and Irma is possible!

A look at how Pro significantly reduced the claim exposure from Puerto Rico's 2017 hurricanes.

News

June 20, 2020

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Pro is successfully handling – on behalf an important UK Reinsurer – a portfolio run-off of hurricanes María and Irma, which isolated Puerto Rico in 2017.

As a first step, we started by performing a claims audit in Puerto Rico of 10% of the open claims to determine – between other issues – the reserves adequacy, claims handling efficiency, cedant´s and adjuster´s pro-activity to negotiate and close claims to reduce our client´s exposure.

After the audit was performed, a Report was presented to our client, detailing the most relevant findings. Pro team detected some large claims that – from our perspective – were not sufficiently reserved. Additionally, jointly with our report, we submitted our client an Action Plan to handle the claims portfolio, focused in a more pro-active claims handling in order to reduce exposure and duration of the run off.

Our client approved Pro’s Action Plan which was in line with their needs. Pro team in Buenos Aires – with a resource based in Puerto Rico – started handling this portfolio since July 2019.

Since project’s kick off, Pro team has been able to obtain a 40% reduction of the portfolio reserves and 50% reduction in the number of claims.

Projects like this, are – in principle – replicable throughout Latin America, where we also have Rep offices in Brazil, Peru and Colombia.

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