Tigon Debt Recovery Services Ltd

The Theory

As a company you are due premiums or reinsurance recoveries. You have issued correct documentation either direct or via the broker and you expect to be paid within your terms of credit.

The Practice

Despite repeated chasing, monies fail to materialise. To obtain payment you are eventually forced to go to arbitration, issue a writ or to enter into commutation negotiations. Failure to do so may result in non payment.

Why does the Reinsurance Industry experience so many problems with this theoretical arrangement?

• The long term nature of many Reinsurance claims sees the collection process affected adversely by an Industry beset with Mergers, Run-Off and Insolvency.
• Historically in the Reinsurance Industry, terms of credit have been breached with little or no consequence.

It does not have to be that way!

Most companies pride themselves on having a good, if not, excellent, credit control department. It is necessary to give terms of credit which are geared to the Insurance industry, but the majority of companies do not pursue unpaid balances until well after (sometimes years after) the terms of credit have been breached.

Once the terms of credit have been breached, treat and pursue your monies as a bad debt.