Contact Numbers:

To report a claim:
(800) 880-0474 / (817) 732-2111

Personal Lines Fax:
(800) 880-2881 / (817) 732-1011

Wellington Financial Services has proven that it is not what you expect but what you inspect when it comes to insurance and reinsurance contract compliance. Wellington Financial Services makes available customized audit packages for insurers, reinsurers, public regulatory authorities and equity groups involved in mergers and acquisitions to encompass all of the major operational elements of insurance. Generally our services are used for assurance of contract compliance, third party quality control and due diligence.

In conjunction with a major multi-national accounting firm, Wellington Financial Services has developed an innovative, proprietary audit plan for cedents designed specifically to review programs that have been terminated and/or are in a run-off status. The plan was developed at the request of reinsurers frustrated with the traditional audit services and methodology which failed to yield meaningful results to verify treaty compliance, loss and premium submissions. While the plan does include statistical analysis, Wellington's focus is to identify areas most likely to yield material errors in premium and loss submissions and check fundamental treaty compliance, which, to date, has yielded savings of many millions of dollars for our clients.

A program review can be applied to the whole book of business or limited to specific transactions. Insurers with Managing General Agents and reinsurers must monitor the performance of their reinsurance contracts to ensure performance is in compliance with the contract as well as in accordance with representations and warranties conveyed in the underwriting process. Optional audit elements include:

  • Contract Compliance - Analyze individual treaty compliance and validate adherence to underwriting warranties and representations (additional concentration on the technical aspects of contract compliance, rather than specific transactions, to evaluate procedural or incorrect interpretive issues that generally result in material financial errors);
  • Claims Handling – Confirm fiduciary responsibilities of insurers/cedents as evidenced in claims management philosophies, operations and systems; and, evaluate the technical claim settlement practices through review of amounts paid and reported (also targeting areas of potential savings and/or legal exposure to improve underwriting results and reduce potential liabilities);
  • Premium Accounting – Determine if premiums and commissions have been correctly assessed and administered, verify that unearned premium is collectable and validate underlying policy data.
  • Management Advice – Reinsurance problems are specific to each client, thus requiring tailored solutions and alternatives. Wellington Financial’s methodology provides for feasible solutions, which are quickly implemented and cost/benefit sensitive.

Having administered over 25 significant run-off programs, Wellington Financial Services has the experience to know what to look for and evaluate.