Annual Conference Session Details

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16. Discussion Group: Collateral Without Damage (NO CREDIT)

Date: 2021-08-11T00:00:00-04:00 Time: 10:00 am-10:50 am

Content Advisor: Peter McDougall, Paul Frank + Collins

Coordinator & Co-Facilitator: Edward Koral, BDO USA LLP
 

The certainties of life: death, taxes, and collateral. That is how most risk managers view it, and it's not too far from accurate. Collateral is often a motivator for leaving an insurance carrier, beginning to work with a new one, contentious negotiations and misunderstandings, and intractable financial jams. This discussion will provide a lively exchange of war stories, cautionary tales, and common-sense tips on how to navigate your organization through difficulties with reinsurance or self-insurance collateral requirements. We will talk about the steps you can take - in advance - to ensure that you are better prepared for contentious negotiations and equipped with more leverage. Here are some of the questions we'll be considering:

 
- Why does the insurer want/need collateral?
- How can a risk manager prepare for a collateral negotiation?
- How can a risk manager negotiate a transaction to avoid being trapped in an arrangement with little/no negotiating leverage?
- What role is played by actuaries on both sides?
- What are some alternative forms of collateral?
- How do you negotiate collateral requirements when there is little or no historical loss data or experience?
- What other pressures are faced by the risk manager in working to reduce collateral provided?
- What are some realistic work-arounds? 

Scheduled Speakers:

Edward S. Koral

Ed Koral is a managing director with BDO’s Insurance Risk Advisory group. In providing insurance services to non-insurance organizations, he supports corporate clients with program design and analysis, and works with clients to develop bespoke insurance products for their customers, dealers and franchisees in support of their core business. He has over 35 years of experience with captives and other alternative risk funding vehicles. Ed joined BDO in 2020, after spending 18 years with Deloitte in a similar capacity, and 17 years with Marsh. Ed has served VCIA in multiple capacities: as a Board member for six year, and as a conference committee member. Currently, Ed serves on the faculty of the International Center for Captive Insurance Education (ICCIE).