The working practices of the Lloyd’s market currently dictates focus on the ‘open years of account’ as the closing year drops off and a new year begins; but what becomes of the debt that is left behind?

The answer in many cases is nothing or when asked, “we have no debt”. Our experience shows that companies either have lack of confidence or over confidence in data quality. This in many cases is at the heart of the issue where a “no” or “nothing worth worrying about” response is received. Overinflated / underinflated EPIs, endorsements not processed, adjustable policies not correctly flagged all lead to misleading final contract positions.

Time dictates that 100% focus on gaining a true final position on legacy years of accounts is not achievable. However, as a professional services’ provider dedicated to managing and tidying up accounts, we find clients are often surprised by the financial gains that can be achieved.

We are also seeing the impact of the recent market decision to purge unpaid delinked signings. This emphasises the need to identify what premiums remain unpaid as these debts will be removed from underwriting systems. Companies then become reliant on the broker to continue to chase the debt and resubmit again.

Our team have a proven track record that has realised more than £500m of legacy/trapped premium recovery for clients. Our credit control service provides the focus without the cost meaning no risk to our clients. We are only remunerated when successful.

This is achieved through comprehensive reviews of client data. We do not make any assumptions e.g. if cash has been paid and exceeds the EPI our thought process is not job done, we consider all the following scenarios:

• unpaid delinked signings
• adjustment premiums not accounted
• missing bordereau and treaty accounts
• missing profit commissions
• provide confirmation when no further premium is due

This enables clients to:

• Manage EPIs effectively
• Increase profit from unbudgeted premium collections
• Create a positive balance sheet impact from additional cash flow
• Receive regular feedback reporting resulting in a final position for each year of account

If you’d like to have a conversation about your legacy credit control, please do get in touch with Sarah Savory, Director of Premium Credit Control on Sarah.Savory@davies-group.com.