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Run-Off Services - Schemes of Arrangement

In 2007 the High Court of Justice sanctioned the proposed Schemes of Arrangement for the companies that make up the Willis Faber Underwriting Management (WFUM) Pools. The successful sanctioning reinforces Schemes of Arrangement as a key tool for achieving finality for run-off insurance portfolios.

Our run-off services

The greater involvement of policyholders and regulators means that Schemes now require greater consideration and planning before implementation.  We believe expert involvement and experience in the process is therefore becoming more crucial.  There are various ways in which Deloitte can assist you with the preparation and successful implementation of a Scheme.  Amongst other things, we can perform the role of:

  • Scheme Actuary - One of our partners, David Hindley, has extensive experience as a Scheme Actuary for both solvent and insolvent Schemes.  He is supported by an experienced team who have assisted him in valuing in excess of 300 claims. Deloitte developed a detailed Estimation Methodology for the WFUM Pools’ Schemes covering all types of claims that are likely to arise under the Schemes.  The WFUM Pools’ Estimation Methodology is widely recognised as the most comprehensive Estimation Methodology to date.
  • Vote Adjudicator – In addition to acting as the Scheme Actuary for the WFUM Pools’ Schemes, David Hindley was also the Schemes’ Vote Adjudicator.  David and his team also constructed the Vote Adjudication Protocol, which was approved by the Court at the leave to convene hearing.  The Protocol advised Scheme Creditors how their vote values should be supported and how their votes would be valued if they were subsequently referred to the Vote Adjudicator by the independent Chairman.
  • Scheme Advisor – We work with clients and their legal advisors to manage creditor notification, information requirements, voting arrangements and other key aspects of the Scheme process.  Deloitte has an experienced team of insurance industry restructuring professionals who have been involved in a wide range of restructuring assignments and run-off solutions.  These include acting as Scheme Advisor to insurance companies.  Recently Deloitte consultants were involved in designing, implementing and achieving sanction for the WFUM Pools’ Schemes.
  • Actuarial and Scheme Adjudicator – One of our partners is currently the appointed Scheme Adjudicator for a Scheme for a UK reinsurer . We can also perform the role of Actuarial Adjudicator, to ensure that the estimation methodology is applied fairly and consistently across all claims.
  • Independent Chairman – We have a team of insurance experts with considerable knowledge and experience in the non-life insurance sector, many of whom are qualified to act in the role of Independent chairman in the implementation of a Scheme.
  • Creditor Support – We have detailed experience of reviewing claims submitted by creditors under a number of Schemes, providing assistance to creditors in commuting their policies and have significant experience of the information required to support Scheme Claims.  We have applied this expertise to assist certain of our clients in submitting and supporting their Scheme Claims. 

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