Dedicated Risky Business readers know that KCIC has been reporting on the declining financial health of Arrowood Indemnity Company (formerly Royal Indemnity Company) for several years. Arrowood’s impending insolvency and liquidation are just the latest retelling of the failure of run-off insurance companies and their regulators in the United States to protect policyholders.
While we have often compared Arrowood to Bedivere Insurance Company (ordered into liquidation in 2021), we wanted to reshare a recent post on Reed Smith’s “Policyholder Perspective” blog. Author Ann Kramer, an insurance recovery partner at Reed Smith, draws a comparison between Arrowood and the Kemper companies (Lumbermens Mutual Casualty Company, American Motorists Insurance Company, and American Manufacturers Mutual Insurance Company), which were ordered into liquidation in 2013 after years of poor financial health. Titled “Is Arrowood the next Kemper? The insurance insolvency system is broken,” the post provides yet another example of how Arrowood is a far-too-familiar scenario.
Previous KCIC reporting on Arrowood:
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Nick Sochurek has extensive experience in leading complex insurance policy reviews and analysis for a variety of corporate policyholders using relational database technology.Learn More About Nicholas
Jonathan Terrell is the Founder and President of KCIC. He has more than 30 years of international financial services experience with a multi-disciplinary background in accounting, finance and insurance. Prior to founding KCIC in 2002, he worked at Zurich Financial Services, JP Morgan, and PriceWaterhouseCoopers.Learn More About Jonathan