Commutation

There are many aspects to a commutation deal, ranging from an in-depth technical evaluation of loss experience and contractual exposures, to the psychology of a horse trade. Often the form of a financial transaction significantly affects the reception which a commutation deal will receive from supporting counterparties (such as reinsurers).

Poorly structured commutations whose scope includes the settlement of contingent (IBNR) claims are likely to damage a cedent’s ability to collect reinsurance.

Our range of experience in the field is diverse covering multiple lines of business, territories and contractual arrangements.