Subsequent to an insurance company's divestiture from the surety industry, Guardian was engaged to handle all underwriting and claims run-off on an outsourced basis. We assumed all obligations and acted as the insurance company's in-house underwriting and claims departments. Among other tasks, this included developing claims and underwriting policies and procedures, handling all underwriting renewals, premium collections, reinsurance reporting, status inquiries, claims reserving, claims administration, evaluation, negotiation, settlement, reinsurance billing, hiring and managing outside legal counsel and other service providers, preparing construction affirmative claims and performing defensive claims analysis, subrogation and recovery, litigation support, and fulfilling all reporting requirements to insurance company management, reinsurers, and the Department of Insurance.
In combination with performing all underwriting activities, Guardian effectively resolved claims that were reserved in excess of $35 million while collecting $10 million in subrogation. Work was completed in the claims, underwriting, accounting, and finance departments, on time and under budget.